In an effort to further meet the needs of U.S. small businesses and nonprofits, the SBA announced on Monday that it has reopened the Economic Injury Disaster Loan and EIDL Advance program portal to eligible applicants experiencing economic impacts due to COVID-19.
SBA’s EIDL program offers long-term, low-interest assistance for small businesses and nonprofits to help provide economic support to alleviate temporary loss of revenue and can be used to cover payroll and inventory or pay debt or fund other expenses, the SBA said in a June 15 press release.
EIDL Advance provides up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and does not have to be repaid, according to SBA.
According to SBA, EIDL and EIDL Advance:
- may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the pandemic’s impact, and that are not already covered by a Paycheck Protection Program loan;
- the interest rate is 3.75% for small businesses and 2.75% for nonprofits; and
- to keep payments affordable for small businesses, SBA is offering loans with long repayment terms — up to a maximum of 30 years — with the first payment deferred for one year.
Small businesses and nonprofits may request, as part of their loan application, an EIDL Advance of up to $10,000, according to the press release. SBA is also assisting small businesses and nonprofits via the PPP, which is currently accepting applications until June 30, 2020.
The full press release can be accessed on SBA’s website.