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EIDL Economic Injury Disaster Loan

SBA’s Economic Injury Disaster Loan (EIDL) provides working capital to small businesses suffering economic injury as a result of the COVID-19:

  • Frequently Asked Questions (FAQ): Disaster Loans  (Offline, pending update.) 5/1
  • Loans up to $2,000,000
  • 3.75% fixed interest rate on loans to for-profit companies
  • 2.75% fixed interest rate on loans to non-profits
  • Up to 30-year term and amortization (determined on case-by-case basis)
  • Financing to be used for fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
  • At present, the EIDL is the only way to access the $10,000 forgivable loan.
  • Up to $200,000 without a personal guarantee from owners.
  • SBA FACT SHEET: Application filing deadline is 21 December 2020.  Not currently accepting applications; funding may lapse again.
  • FAQ Regarding Faith-Based Organizations
  • SBA Affiliation Rules
  • Updated Guide to the EIDL & PPP (as of 15 April 2020) 
  • Upcoming webinars are available here.

All 67 counties eligible under an Economic Injury Disaster Loan declaration.

How do check on the status of my EIDL application?

If you application number starts with a “3” then SBA has received your application and it is in the queue to be processed.

  • Email disastercustomerservice@sba.gov with your application number.
  • Call   1-800-659-2955.  Press 2.  Ask for a Tier 2 customer support supervisor to check on the status of your application.
  • Check your personal credit report.  SBA will check your credit prior to issuing the “up to $10k” forgivable advance, and again before considering your disaster loan.
  • Based on company feedback, it seems to take 2-3 weeks from time of application until the forgivable advance is approved, and another 1-2 weeks before SBA contacts the applicant regarding the disaster loan.
  • The Alabama SBDC cannot check on your application for you.  The SBA District Office cannot check on the status of your application.

If your application number starts with a “1” or a “2” it means that you applied through the old system.  SBA has requested all of those applicants to apply again through the new system.

If you have Not yet applied for the EIDL:

First, it’s important to understand that while Economic Injury Disaster Loans can be a lifeline, they will take time to acquire and not all businesses will qualify. Alabama SBDC recommends that you take action now to preserve cash and protect assets. You should be in contact with your lending institutions to see what programs your bank/credit unions are offering during this time (delaying payment requirements/interest only payments) and vendor payments on account. Do the hard stuff first.

NOTE: SBA’s disaster loan application went offline on 15 April.  SBA has not determined if or when it will return.

APPLICATION PROCESS AS OF 30 MARCH 2020: 

Background: The original online application system went down for maintenance on 25 March, and did not returned.  SBA began accepting loan applications via Box Upload between 25-29 March.  A new online system was launched on 30 March:  https://covid19relief.sba.gov/ 

Click here for a preview of the online application form.  (This is for reference purposes only. All information should be entered into the online form.

  • If you started an application on the original system (on 25 March or before), but did not click submit, you have not submitted an application to SBA.  You must start a new application.
  • If you submitted an application before the evening of 29 March, you need to re-submit.
  • https://covid19relief.sba.gov/ 

An SBA Loan Officer will contact you to request supporting documentation.  Take time now to ensure that your documents are signed and ready to go.

  • Tax Information Authorization (IRS Form 4506-T) for each owner with minimum 20% ownership interest in the business.
  • Federal personal AND business tax returns for the last 3 years, including all schedules (include personal tax returns for each owner with minimum 20% ownership interest in the business).
  • Personal Financial Statement (SBA Form 413D) for all owners of the business with minimum 20% ownership interest.  (The CARE act may have removed the necessity for this form.)
  • Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).
  • A current year-to-date profit and loss statement and balance sheet.
  • Monthly sales figures beginning 3 years prior to the disaster and continuing through the most recent month available. (SBA Form 1368). Total figures for each year should reconcile to the sales figures on corresponding tax returns.
  • Download All Forms in a ZIP file.

Begin an online application at https://covid19relief.sba.gov/.

Webinars, Presentation Slides, & On-Demand Video

Slide Presentation & On-Demand Webinar Recording:  This is where you will find a link to the PDF slides that were presented. NOTE: This is a rapidly evolving topic; please follow us on https://www.facebook.com/AlabamaSBDC to ensure you have the most current information!

Reminder: The Alabama SBDC Network is NOT the US Small Business Administration. No one at the Alabama SBDC has the ability to approve or deny your application. As we learn more about which applications are being accepted, and which ones are being rejected, we are letting everyone know. We are not only talking with SBA’s Office of Disaster Assistance, but also with our SBDC colleagues throughout the country.”

Are you really a small business (according to SBA)? 

SBA’s Size Determination Tool provides a fast way to check.  For the Disaster Loan, if your NAICS code is limited by revenue, you can only average the last three years of business.  (Other SBA programs allow you to take the average over the last five years.  Read the details here.