COVID-19 Funding Opportunities
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. Below are the frequently asked questions and answers.
Who is eligible for EIDL?
- Businesses with no more than 500 employees
- Sole proprietors, with or without employees, or as an independent contractor
- A cooperative with no more than 500 employees
- An ESOP with no more than 500 employees
- A tribal small business concern as defined in section 31(b)2(c) of the Small Business Act, with no more than 500 employees
Traditional EIDL program rules waived:
- No personal guarantee is required for loans up to $200,000
- The requirement to be in business for 1 year, with the exception that the business must be in operation before January 1, 2020
What can EIDL funds be used for?
- Providing paid sick leave to employees unable to work due to being directly affected by COVID-19
- Maintain payroll to retain employees
- Meeting increased costs of materials due to interrupted supply chains
- Making rent or mortgage payments
- Making debt payments that cannot be met due to revenue loss
How soon can I get funded?
- You can be advanced up to $10,000 within 3 days, and this amount is not required to be repaid even if you are denied for an EIDL loan.
How is the amount of the loan determined?
- Total debt obligations during the affected period
- Operating expenses that mature during the affected period
- Reasonable working capital required during the affected period
- Expenses you could have met and a working capital position you could have maintained during the affected period
What is the affected period?
- January 31, 2020 through December 31, 2020
What is the maximum loan amount and the repayment terms?
- Loans can be made up to $2 million
- There is no loan forgiveness available
- The rate is 3.75% for small businesses and 2.75% for nonprofits
- Loans have up to a 30-year term
It can be difficult to make sense of all the new legislation passed in the wake of COVID-19. Contact us to help you navigate through this pandemic and check out our COVID-19 Resources page for more information.