The SBA recently re-opened their online disaster loan portal and is accepting new Economic Injury Disaster Loan (EIDL) applications. Previously, SBA was only accepting applications from agricultural enterprises.
To apply online, go to https://covid19relief.sba.gov/#/
For more information, go to https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
Businesses may request an Advance on their loan up to $10,000. The Advance does not have to be repaid and does not depend on loan approval. SBA pays Advances at $1,000 per employee, up to $10,000, based on the number of employees the applicant states in their application.
- Direct loan from U.S. Small Business Administration
- Loan proceeds may be used for all normal, ordinary operating expenses of the business.
- Term = 30 years
- Interest rate for non-profits = 2.75%
- Interest rate for small businesses = 3.75%
- No cost to apply
- No prepayment penalty to pay off a loan
- No obligation to accept a loan after applying
- Monthly loan payments deferred first year
- No collateral requirements for loans to $25,000
- Collateral on loans over $25,000 requires a UCC filing versus business assets