If your business has suffered a significant economic impact as a result of the COVID19 pandemic, you may qualify for SBA EIDL. Before you apply, check the SBA COVID19 EIDL application guide below.
Also, see how you can qualify and the necessary documents required for your application.
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SBA Economic Injury Disaster Loan Application
Small enterprises, small agricultural cooperatives, and most private nonprofit organizations that have incurred considerable economic injury and are located in a declared disaster area may be eligible for an SBA Economic Injury Disaster Loan (EIDL). Check EIDL types and how to qualify here.
SBA COVID19 EIDL APPlication
This federal small company loan program helps small businesses recover from the economic effects of the COVID-19 disaster by making financing more available and borrowers-friendly. If your business experienced an impact due to the COVID19 pandemic, you now easily get funding to uphold your business.
See how you can qualify below.
SBA COVID19 EIDL Application Details
- Max loan amount = $2 million (BA will begin approving loans greater than $500,000 on October 8, 2021)
- Loan term = 30 years
- Interest rate = Businesses: 3.75% fixed; Private nonprofit organizations: 2.75% fixed
What Can I Use COVID19 EIDL for?
You can use the funding from the COVID19 Economic Injury Disaster Loan in the following ways:
- Working capital
- Business operation expenses (eg. rent/mortgage)
- Other business expenses
- Clear off business debt
How to Qualify for COVID EIDL
To qualify for COVID19 EIDL, you must meet the eligibility requirements outlined in Section 2 of the FAQS (you can find this at Sba.gov)
In addition, the credit score requirements for qualification:
- $500,000 or under: 570
- greater than $500,000: 625
Further, small enterprises must complete the economic injury calculation, which calculates a qualifying loan amount based on two years’ worth of income and the cost of goods sold.
SBA COVID19 EIDL Application Guide
There are four stages of the COVID EIDL application:
- Disclosures
- Business information
- Business owner’s information
- Additional information, and
- Summary
Make sure to fill in the information correctly. The information will be used to see if the applicant qualifies for a loan for economic injury. Your loan will not be fully processed if you do not provide all of the relevant information.
Lastly, although you may not need to complete all components, the total time to finish this application is one hour and forty-five minutes. Unless it displays a currently valid OMB approval number, you are not compelled to reply to this collection of information.
