Notice: The deadline for Economic Injury Disaster Loan (EIDL) applications has been extended through Dec. 31.
Check with SBA disaster customer service if you have a question about the status of your loan.
It is a low-interest federal loan issued by the SBA to alleviate economic injury small businesses or private nonprofits are experiencing injury and, in this case, injury caused by the Coronavirus (COVID19). They become available once a county or state gets an Economic Injury Disaster Loan assistance declaration also issued by the SBA.
Many factors go into qualifying for an EIDL. A primary one is that a small business has to show a loss effective January 31, 2020, to now and/or in the future, as compared to 2019 financials.
The SBA highly recommends using the online loan application, which can be found at https://disasterloan.sba.gov/ela/.
Small businesses will also need the following:
For those with limited web/online capabilities, paper forms can be found at https://disasterloan.sba.gov/ela/Information/PaperForms.
Yes, 501(C)(6) can apply for the EIDL.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
If EIDL applications were completed BEFORE Monday, March 30, they should be resubmitted using the online link. EIDL applications submitted March 30 or later received a verification number upon submission of the application. This verification indicates the application was received. No confirmation email will be sent as a follow-up confirmation of receipt of application.
The interest rate is 3.75% for small businesses and the interest rate for nonprofits is 2.75%.
EIDLs repayment is deferred for twelve months. Interest accrues during this period. Further, SBA offers loans with long-term repayments to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
The SBA offers the economic injury disaster loans, not banks. Small businesses should apply for Economic Injury Disaster Loans at https://disasterloan.sba.gov/ela/.
Traditional SBA-backed loans are available as well; to find an SBA-approved lender, visit www.sba.gov/lendermatch.
The SBA is available to assist all small businesses across the nation and does not have a total cap on the loan amounts; each qualifying small business can apply for a loan of up to $2M to assist with economic recovery. There is no state or territory limit.
This type of disaster is unprecedented, so no one can predict for sure. However, historically, disaster loans have taken approximately three weeks from time of application until completion of loan officer assessment, submission of any additionally required documentation, and final loan approval. The SBA anticipates the money will be distributed 3 days after that three-week loan officer review and approval period.
As much as possible, applications and processing is being done online/virtually. SBA’s offices are available to assist borrowers, and SBA’s funded Wisconsin resource partners can also help. Download contact information here.
This level is set by Congress. If Congress acts to adjust it, the SBA will do so per the action.
SBA will look at the last three years historical to determine what the business could have paid if the disaster would not have occurred. The loan funds will not provide for lost sales.
There is 12 months of payment deferral automatically built into the disaster loan that begins from the date of the Note, but interest accrues.
As of April 2, owners will not have to provide documentation of how EIDL funds were spent (unless audited by IRS), but this could change.
No, however the business will need the appropriate business and financial documentation required that shows it is a viable business.
No, same size standard as the 7a program.
The typical timeframe is 21 days for a decision on the application package as long as all information is provided accurately by the applicant. After decisioning, SBA legal prepares the closing documents to send to the borrower. After receipt of the signed documents the funds are direct deposited typically in 3 -5 business days. If collateral is required for the loan SBA will prepare a partial disbursement of $25,000 to submit to the borrower and release the remaining funds once all collateral is appropriately secured.
Yes. An example would be if the loan was turned down for insufficient income and the owner would like to add on a co-borrower, such as a spouse.
That information is not available yet.
The applicant will have up to 6 months to reactivate their loan that was approved.
No. SBA will complete the thorough analysis to determine this based on the information provided by the applicant.
No, if insurance proceeds are disbursed to the business after the loan is funded those proceeds would be used to pay down on the disaster loan.
Yes. The EIDL working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.
Applicants must wait until they receive an email invite from the SBA to apply for the new Targeted EIDL Advance. In accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act (Economic Aid Act), businesses and nonprofit organizations that received a previous EIDL Advance in an amount less than $10,000 will have first priority to apply for the Targeted EIDL Advance and will be the first group to receive email invites to the application portal.
The second priority group are businesses and nonprofit organizations that applied for EIDL assistance before December 27, 2020, but did not receive an EIDL Advance because available funding was exhausted in mid-July 2020.
The SBA will begin sending email invites to businesses and nonprofit organizations that received the EIDL Advance in an amount less than $10,000 starting on February 1, 2021. It may take several weeks before all emails are sent to businesses in the first priority group so please do not be alarmed if you do not receive your email invite right away. The invite to apply will be sent to the primary contact email address associated with your original EIDL application. All communications from SBA will be sent from an official government email with an @sba.gov ending. Please do not send sensitive information via email to any address that does not end in @sba.gov.
The SBA will closely monitor the rate of applications and approvals for the first priority group and will announce a projected start date for the second priority group at a later date.
Applicants can send a request for reevaluation of a Targeted EIDL Advance application that was declined to the following email address: .
Applicants should follow these instructions when requesting a re-evaluation:
The Wisconsin SBDC Network is a proud part of the Institute for Business & Entrepreneurship in the Universities of Wisconsin.
It is f unded in part through a Cooperative Agreement with the U.S. Small Business Administration.
Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Contact the relevant SBDC office or call 608-263-7794.