As business leaders, we all worry about the economic aftermath that COVID-19 will have. Some industries are already feeling the ramifications. In response to this pressure on businesses, the US Small Business Administration (SBA) has offered the Economic Injury Disaster Loan (EIDL) available to those businesses that are being impacted by the pandemic.
Small business owners in all U.S. states and territories who have suffered economic injury due to Coronovirus (COVID-19) are currently eligible to apply for a low-interest loan to help with financial obligations.
Small businesses, agricultural cooperatives and most private nonprofit organizations are welcome to apply. This emergency loan is meant to provide cash influx or working capital to help the business survive until normal operations resume. It is not for the purpose of consolidation or refinancing.
Loan amounts less than $25,000 do not require collateral and can be granted up to $2,000,000 or beyond with special exceptions. Applicants need to pass credit worthiness requirements and meet the terms designated by the SBA. Interest rates are determined through a formula but shall not exceed 4 percent, with a potential lesser rate for non-profits. Terms are set based on the ability to repay the loan and should not exceed 30 years.
You can read more and follow the simple application process here: https://www.sba.gov/funding-programs/disaster-assistance
If you have questions or need assistance with the SBA EIDL, please contact our experts today!