How to Apply for an Economic Injury Disaster Loan (EIDL) And Loan Advance
Covid-19 related EIDL loans include a $10,000 forgivable advance
By now most small business owners know that the CARES Act, through the Small Business Administration (SBA), offers financial relief through two targeted loan packages—the new Paycheck Protection Program (PPP) and the existing Economic Injury Disaster Loans (EIDL) program.1
This article deals with the EIDL program and a unique feature of that program known as the Economic Injury Disaster Loan Emergency Advance. This part of the EIDL program provides up to $10,000 in emergency relief that does not have to be repaid, making it effectively a grant. To receive the advance, you must apply for an EIDL.
Whether your EIDL is approved or not, the advance does not have to be repaid and you should receive it within days following a successful EIDL application, according to the SBA.2
KEY TAKEAWAYS
- Covid-19 related EIDL loans include a $10,000 forgivable advance.
- You must qualify as a small business by number of employees.
- Maximum loan is $2 million with exact amount based on economic injury suffered.
- The normal EIDL application has been streamlined and should take about 2 hours.
- The SBA says your $10,000 loan advance should come in about 3 days.
Qualification
To qualify for an EIDL, your business must meet the definition and size standards of a small business and be located in a declared disaster area.
Definition standards
According to the Small Business Administration a small business:
- Is organized for profit.
- Has a place of business in the U.S
- Operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor.
- Is independently owned and operated.
- Is not dominant in its field on a national basis.
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