SBA EIDL Loan and Grant Program Summary

COVID-19 Resources for our Tenants & Partners

Economic Injury Disaster Loan (EIDL) and EIDL Grant Program Summary

Updated: April 24, 2020

Disclaimer: Content on this page is regularly updated. We are providing these resources as a courtesy to assist you; however, for further information, including legal, insurance, and tax-related questions, we recommend that you contact your own advisors.
Application Submission
  • Open; Time is of the Essence
  • Additional $60BN of CARES Act funding
  • Apply to SBA's Economic Injury Disaster Loan Program and application assistance is available
  • Paper applications are accepted but electronic is easier, faster and more accurate
  • Be persistent!! Website may crash but it is typically fixed quickly.
  • Application requires the following forms:

    • Completed SBA Form 5
    • Tax Information Authorization (IRS Form 4506T)
    • Complete copies of most recent Federal Income Tax Return
    • Schedule of Liabilities (SBA Form 2202)
    • Personal Financial Statement (SBA Form 413)
    • Other Information that may be requested includes:

      • A year-end profit-and-loss statement and balance sheet for that tax year if the most recent Federal income tax return has not been filed
      • A current year-to-date profit-and-loss statement
Eligibility — Size Test and Declared Disaster Impact
  • "Business" defined as businesses with 500 or fewer employees (size includes affiliates)
  • Applicant must have: (1) a credit history acceptable to SBA; and (2) ability to repay the loan
  • Must have sustained substantial economic injury due to declared disaster (economic downturn does not suffice)
  • Must have a physical presence in a declared county (a PO Box is not enough)
  • Applicant with existing SBA Disaster Loans from another disaster may still qualify but loans cannot be consolidated
Ineligible Entities
  • Religious Organizations
  • Charitable Organizations
Loan Limits
  • Up to $2M
  • Specific amount determined by SBA based upon review of applicant's financials

    • Based on size and type of business and its financial resources
    • Applicants can seek increases or decreases
  • Emergency Grant:

    • Up to $10,000
    • Applicant may not be required to repay the Emergency Grant even if later denied for the EIDL loan
Emergency Grant Limits
  • Up to $10,000 available within 3 days of application
  • Applicant may not be required to repay the Emergency Grant even if later denied for the EIDL loan
Allowable Uses of Loan Proceeds

EIDL is a working capital loan that may be used to pay:

  • Fixed Debts
  • Payroll
  • Accounts Payable
  • Other bills that cannot be paid due to CVD-19 impact
  • Borrowers cannot use EIDL funds for the same purpose as a CARES Act loan under section 7(a) or the Payroll Protection Plan (PPP) Loan, so consult your advisor to best maximize your benefits
Unallowable Uses of Loan Proceeds

Proceeds may not be used to:

  • Refinance debt incurred prior to CVD-19;
  • Make payments on loans owned by another federal agency (including SBA);
  • Pay tax or other non-tax penalty owed because of non-compliance with a law, regulation or government order;
  • Repair physical damages; or
  • Pay dividends or disbursement to owners, except for reasonable remuneration
Term

30 year max

Interest Rate
  • 3.75% (for profit)
  • 2.75% (non-profit)
Loan Repayment

Amortized principal and interest over up to 30 years

Refinance

May refinance EDIL loan made between January 31, 2020 through the date on which PPP loans are made available

Certification

Must make good faith certification that business impacted by CVD-19 and will use funds to retain works and maintain payroll and other debt and there is no outstanding application pending for the same purpose or duplicative of amounts applied for and received under PPP program

Costs

None

Collateral and Personal Guarantee
  • No collateral for loans less than $25,000
  • SBA will not decline a loan for lack of collateral but requires borrowers to pledge what is available
  • No guaranty for loans less than $200,000