The U.S. Small Business Administration (SBA) this week reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts because of COVID-19.
SBA’s EIDL program offers long-term, low-interest assistance for a small business or nonprofit. These loans can provide vital economic support to help alleviate temporary loss of revenue. EIDL assistance can be used to cover payroll and inventory, pay debt, or fund other expenses. Additionally, the EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.
- EIDL loans may be used to pay debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact and that are not already covered by a Paycheck Protection Program loan. The interest rate is 3.75 percent for small businesses. The interest rate for nonprofits is 2.75 percent.
- To keep payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year.
- In addition, small businesses and nonprofits may request, as part of their loan application, an EIDL Advance of up to $10,000. The EIDL Advance is designed to provide emergency economic relief to businesses that are currently experiencing a temporary loss of revenue. This advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan.
For additional information, visit the SBA disaster assistance website at SBA.gov/Disaster.
Through June 6, 25,378 Ohio businesses have been approved for $1.7 million in loans. Additionally, nearly 73,000 Ohio businesses have received disaster loan advances totaling more than $252 million.