It has been a busy week with updates and news pouring in regarding business protocols and government assistance programs. To keep you informed we have put together a summary of 3 prominent tools that you may want to research and use as appropriate. Keep in mind that the SBA is using financial institutions including banks and credit unions to establish the Paycheck Protection Program (PPP) loans. You will need to contact your current financial institution for an application. The Economic Injury Disaster Loan (EIDL) program is a direct SBA loan application. Go to their website to apply at www.sba.gov
1) Economic Injury Disaster Loan (EIDL)
The Small Business Administration’s (SBA) disaster loans are the primary form of Federal assistance for the repair and rebuilding of non-farm, private sector disaster losses. The disaster loan program is the only form of SBA assistance not limited to small businesses.
The Economic Injury Disaster Loan Program (EIDL) can provide up to $2 million of financial assistance (actual loan amounts are based on amount of economic injury) to small businesses or private, non-profit organizations that suffer substantial economic injury as a result of the declared disaster, regardless of whether the applicant sustained physical damage.
An EIDL can help you meet necessary financial obligations that your business or private, non-profit organization could have met had the disaster not occurred. It provides relief from economic injury caused directly by the disaster and permits you to maintain a reasonable working capital position during the period affected by the disaster. EIDL’s do not replace lost sales or revenue.
To be eligible for EIDL assistance, small businesses or private non-profit organizations must have sustained economic injury and be located in a disaster declared county or contiguous county.
Loan Terms- The SBA can provide up to $2 million in disaster assistance to a business. The $2 million loan cap includes both physical disaster loans and EIDL’s. There are no upfront fees or early payment penalties charged by SBA. The repayment term will be determined by your ability to repay the loan.