The EIDL program or Economic Injury Disaster Loan allows the SBA to provide loans of up to $2 million to small businesses that have suffered substantial economic injury. The EIDL reopened its loan program to small businesses on June 15, 2020 after closing to most small businesses in May of 2020. In addition, small businesses and non-profits may request, as part of their loan application, an EIDL Advance of up to $10,000. The EIDL Advance is designed to provide emergency economic relief to businesses that are currently experiencing a temporary loss of revenue. This advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan.

EIDL loans are made directly by the SBA without involving a third party lender.

Where Can I Apply For The EIDL Loan?

You can apply online at SBA.gov/disaster

What Are The Credit Requirements For The EIDL Loan?

Credit History – Applicants must have a credit history acceptable to SBA.

Repayment – Applicants must show the ability to repay the loan

SBA requires collateral for all EIDL loans over $25,000.00

What Type Of Businesses Are Eligible To Participate?

Small businesses with 500 or fewer employees, Cooperatives, ESOPs, and tribal small businesses with fewer than 500 employees, sole proprietors, independent contractors, most private nonprofits, and agricultural businesses. You must have been in business as of January 31, 2020.

What Is Considered A Small Business Under the Small Business Act?

The Small Business Act defined “Small Business” as a business that:

  1. is organized for profit;
  2. has a place of business in the United States;
  3. operated primarily within the United States or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials, or labor;
  4. is independently owned and operated;
  5. is not dominant in its field or national basis; AND
  6. does not exceed size standards established and updated periodically. By the SBA.

What Is Considered An Agricultural Business Under The Small Business Act?

The Small Business Act defines “Agricultural Businesses” as businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries.

Do I have to be a United States Citizen Or Lawful Permanent Resident (Green Card Holder) To Apply For An EIDL Loan?


What Are The EIDL Loan Amount Limits?

The maximum EIDL is $ 2 million for alleviating economic injury caused by the disaster. If a business is a major source of employment, SBA has the authority to waive the $2 million limit. The amount of each EIDL is limited to the economic injury determined by SBA, minus the business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers the potential contributions that are available from the business and/or its owners.

What Are The EIDL Loan Terms?

The interest rate on EIDL loans is a fixed 3.75% for small businesses and 2.75% for nonprofits. EIDL loans have a 30 year term and SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan amount.

  • Payments on corona virus EIDL loans are deferred for one year
  • Up to $200,000 can be approved without a personal guarantee
  • No collateral is required for loans of $25,000.00 or less.

What Can I Use My EIDL loan for?

Any purpose permitted under Section 7(b)(2) of the Small Business Act, which includes:

  • Providing sick paid leave to employees unable to work due to the direct effect of COVID-19;
  • Maintaining payroll to retain employees during business disruptions or substantial slowdowns;
  • Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains;
  • Making rent or mortgage payments; and
  • Repaying obligations that cannot be met due to revenue losses.

How Long Will It Take To Get My EIDL Loan?

Timelines can vary, but once you have applied a decision is typically made within 21 days of application and disbursement of money usually occurs within five business days.

EPGD Business Law is located in beautiful Coral Gables, West Palm Beach and historic Washington D.C. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Oscar Gomez

Oscar A. Gomez is a Partner and Chair of the Litigation Practice Group at EPGD Business Law. His practice focuses on Business Litigation, including but not limited to Business & Partnership Disputes.


*The following comments are not intended to be treated as legal advice. The answer to your question is limited to the basic facts presented. Additional details may heavily alter our assessment and change the answer provided. For a more thorough review of your question please contact our office for a consultation.

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