fbpx Skip to main content

SBA Economic Injury Disaster Loan (EIDL)

The Cares Act expanded the existing SBA Economic Disaster Loan Program

The SBA Economic Injury Disaster Loan is also available to small businesses and non-profit organizations that suffer economic injury as a direct result of a declared disaster. This includes but not limited to retailers, restaurants, owners of rental property, wholesalers and others. This loan can be used to pay debt, accounts payable, payroll, and other bills that a small business can’t pay due to the declared disaster. EIDLs are working capital loans to help small businesses and non-profit organizations of all sizes meet their ordinary and necessary financial obligations.

Who is eligible?

In general, all of the following entities affected by the disaster provided they were in existence on January 31, 2020:

  • businesses with fewer than 500 employees
  • sole proprietors
  • independent contractors
  • small agricultural cooperatives
  • private, nonprofit, and veteran organizations

What are the EIDL Loan terms?

  • loan amount up to $2 million
  • Interest rates can be as low as 3.75% for small businesses and 2.75% for non-profits
  • Long-term repayments offered in order to keep payments affordable, up to a maximum of 30 years
  • Loan funds can be used as working capital to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred EIDL

Under the CARES Act the following requirements have been waived:

  • the requirement of any personal guarantee on advances and loans of not more than $200,000;
  • the requirement that a borrower be in business for the one-year period before the applicable disaster, as long as the borrower was in business prior to Jan. 31; and
  • the requirement that an applicant be unable to obtain credit elsewhere

How can you access the emergency 10,000 Grant?

Economic Injury Disaster Loan applicants can receive a grant from the SBA. The grant is an emergency advance payment that is requested at the time of application. To access this grant you must first apply for an EIDL. The grant is calculated based on the number of employees. The SBA grant could provide $1,000 per employee with a maximum grant of up to $10,000.

It will be paid while an applicant’s loan application is pending. An applicant shall not be required to repay any amounts of any such advance or grant, even if the applicant is subsequently denied on a pending EIDL loan.

Advance payment may be used for:

  • Providing paid sick leave to employees
  • Maintaining payroll
  • Meeting increased costs to obtain materials
  • Making rent or mortgage payments
  • Repaying obligations that cannot be met due to revenue losses

How to Apply

  • You can apply for an EIDL online with the SBA
  • When you apply, you can request an emergency advance/grant of up to $10,000
  • You will not have to repay the advance, even if your application for a loan is denied

Why small business owners love working with Eco-Tax
  • We appreciate all the attention to detail, willingness to answer any questions, dedication to our business, their expertise and knowledge. They are a key part of our success.

    Claudia Fierro-Poppen, Owner - Ommie Snacks
  • Eco-Tax has been an excellent fit for my company. The online model and upfront pricing makes planning easy. I have nothing but the best to say about their service.  

    Matt, Owner - Winery
  • My business management has become infinitely less complicated, and I have more time to focus on my products and customers. Highly recommend the Eco-Tax team!

    Megan, Owner

    Join Now

    We'll be reaching out to you shortly! If you need to contact us for any reason, you can reach us at 1-866-968-4848 or send an email to myappointment@eco-tax.com