Economic Injury Disaster Loans


In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan (EIDL).  The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $150,000 that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

This is a longstanding program offering low-interest loans for businesses that have suffered losses from some kind of disaster. The loans are made directly by the S.B.A., you don’t have to go through a bank.  Federal legislation in response to the pandemic committed more money and relaxed some of the S.B.A.’s usual requirements for disaster loans.

The loan can be repaid on a term of up to 30 years. The interest rate is 3.75 percent for small businesses and 2.75 percent for nonprofits. No payment is due for the first year.

SBA Loan Aid will complete your SBA loan application.  We will need a signed and dated IRS form 4506-T giving permission for the IRS to provide SBA your tax return information, a copy of your most recently filed Federal income tax return, a schedule of liabilities, and your business’s gross revenues and cost of goods sold for the 12 months that ended Jan. 31, 2020, and a year-to-date profit-and-loss statement.

The S.B.A. does not require a personal guarantee on loans of less than $25,000.  Business assets, like machinery and equipment, can be used to secure loans of up to $500,000; and larger loans may require real estate, whether it’s your business’s or your own, if you have it.

For these loans the S.B.A. will determine how much you can borrow using a formula intended to approximate six months of your operating expenses.  To calculate that, we will generally subtract the cost of goods sold from revenue and apply for half of that sum.  However, because of high demand, the S.B.A. has recently been capping EIDL's at $150,000.

The loans cannot be used to refinance previous loans; but may be utilized for most everything else.  The new Coronavirus elements of the EIDL program, are currently scheduled to end at the end of this year on Dec. 30, 2020.

© 2020 by SBA Loan Aid Financial Services. 

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San Francisco, CA