
Managing Money In A Crisis
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The Economic Injury Disaster Loan (EIDL) program is a government-issued loan program for small businesses in states that have been impacted by the coronavirus. Unlike other Small Business Administration (SBA) loan programs, applications are only available through the SBA disaster loan website. The SBA estimates that it will take around two hours to complete.
The second stimulus bill gave the SBA to offer EIDL grants of up to $10,000 to small businesses that have been impacted by COVID-19. Businesses located in a low-income community with less than 300 employees can qualify for a loan if they suffered an economic loss of 30% or more during the coronavirus outbreak. If you've already received a grant, you can qualify for the difference between your grant and $10,000.
The SBA extended EIDL applications until December 31, 2021. But hasn't yet announced when applications for EIDL grants will reopen.
The SBA and Coronavirus Aid, Relief and Economic Security (CARES) Act expanded eligibility for this loan program since it was first launched.
Making mistakes can get your application thrown out and waste valuable time. If this is your first time applying for government financing, consider reaching out to your local Small Business Development Center (SBDC), which can offer free assistance.
Many banks are also offering customers assistance with SBA disaster loan applications, though you still have to apply through the disaster loan website.
Go to the coronavirus disaster loan application on the SBA disaster loan website. Make sure it’s the application for businesses affected by the coronavirus — there’s a separate application for other SBA disaster loans.
It should say COVID-19 Economic Injury Disaster Loan Application at the top.
The SBA has changed its process a few times for these disaster loans since the start of the outbreak, so don’t skip this section. This is where you’ll find the most up-to-date information on your legal responsibility and how long it’s expected to take.
Select the option that describes your business — if none apply, you’re ineligible for a disaster loan.
Then, check all statements that apply to your business. If all don’t apply, you’re ineligible for an SBA disaster loan.
Generally, you and your business must meet these criteria:
Then, click Continue.
In this section, you’ll provide basic information about your business.
Fill in the fields with the following information about your business’s name and legal status:
You’re only required to answer the first two questions in this section:
Provide the following information, if it applies to your business:
Fill in the fields with the following information:
Answer the following questions about when your business was founded and its operations:
After finishing this section, click Next.
In this section, you’ll provide information about business owners and any business entities that own it.
First, answer: Is your Business owned by a business entity?
If you check No, skip ahead to the Individual owner or agent section. Otherwise, check Yes and provide the following information about that entity:
The business entity is also required to sign a guarantee on your loan.
You’ll need to fill out this section for each business owner. Provide the following information:
To add another owner, click Add Additional Owner. Otherwise, click Next.
Check Yes or No for the following questions:
Keep in mind that criminal offenses don’t include minor vehicle violations like parking tickets.
If you filled the application out on your own, skip this step. But if you signed up for assistance from a bank, SBDC or received any other form of help from an individual, provide the following information:
Check Yes to allow the SBA to contact the person you received assistance from.
Provide the following information for the account where you’d like the SBA to send the funds:
Then, read the certifications and review the penalties for misapplying the loan. Check the box verifying the information you provided is true. Click Next.
Read over the information you entered on your application to make sure it’s correct. Click the Edit button if you need to make any changes.
Check the box certifying that you’re not a robot and click Submit.
You should receive a notification confirming that you’ve submitted your application, giving you an application number. Take a screenshot of this number or write it down for reference.
Some business owners have reported not receiving a confirmation email. Having your application on hand can make it easier if you reach out to customer service — which can be reached at 800-659-2955 or disastercustomerservice@sba.gov.
The SBA will then notify you through the email address you provided when you’ve been approved or denied.
Yes, you can apply for both the Economic Injury Disaster Loan, and the SBA Paycheck Protection Loan (PPL). If you’re using the EIDL to cover payroll expenses, you’ll have to use the PPL to refinance your EIDL.
Unlike the EIDL, you need to apply for the Paycheck Protection Loan through a lender.
While the SBA closed applications for the Paycheck Protection Program for a time, they are once again open and the deadline to apply has been extended to March 31, 2021. For two weeks — from February 24 to March 10, 2021 — the SBA will put a freeze on accepting application from businesses with 20 or more employees. However, during this time larger businesses can still apply with their banks.
It can take weeks or even month to see funds after submitting your application. If you need funding immediately, compare loans for businesses affected by the coronavirus or see if your business qualifies for a grant to cover losses during COVID-19 shutdowns.
Below is a list of online lenders offering SBA Paycheck Protection Loans. We recommend applying as soon as possible, since funds are available on a first-come, first-served basis.
The Economic Injury Disaster Loan available to small businesses affected by the coronavirus outbreak has a more streamlined application process than typical SBA disaster loans.
Read our guide on how to finance your business during the coronavirus outbreak for more options. Or, check out our guide to small business loans.
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