SBA Reopens Economic Disaster Loan Program

Small businesses hurt by the coronavirus pandemic may be eligible for emergency grants and loans from the U.S. Small Business Administration’s Economic Injury Disaster Loan program.

The SBA announced June 15 it was reopening the EIDL program to all eligible participants.

The SBA restricted EIDL loans to agricultural businesses in mid-April after appropriations lapsed.

Small businesses and nonprofits can use EIDL assistance for payroll and inventory, to pay debt, or fund other expenses.

In addition, the loan program will provide up to $10,000—$1,000 per employee—as an emergency, forgivable advance to struggling businesses.

Advance

Small businesses and agricultural companies can receive the advance even if they don’t qualify for an economic disaster loan.

Independent contractors, gig workers, sole proprietorships with or without employees, and freelancers are also eligible for the advance.

The interest rate for EIDL loans is 3.75% for small businesses, 2.75% for nonprofits, with terms up to 30 years, and the first payment deferred for one year.

The SBA is also accepting PPP loan applications through June 30.