The Small Business Administration (SBA) reopened the Economic Injury Disaster Loan (EIDL) and the EIDL Advance program on June 16. The SBA’s existing EIDL emergency loan program was funded with an additional $20 billion to provide emergency relief and to ensure that EIDL loans available to small businesses experiencing economic impacts due to the COVID-19 pandemic. The EIDL program was halted in early May.
The reopening means that small business petroleum marketers and heating fuel dealers have another opportunity to seek long-term, low interest disaster loans and emergency grants from the SBA. Additionally, EIDL Advance will provide up to $10,000 ($1,000 per employee) of economic emergency relief to small businesses as a nonrepayable grant. The SBA said it has improved the application and loan closing process to make it easier and faster for applicants to receive funding.
Important Facts About EIDL Loans and EIDL Advance Grants:
- EIDL is a low interest federal disaster loan for working capital. EIDL is available to small businesses, non-profit organizations and agricultural concerns with up to 500 employees that are experiencing substantial economic injury as a result of COVID-19.
- EIDL loans may be used to pay debts, payroll, accounts payable and other bills that cannot 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% for small businesses. The interest rate for non-profits is 2.75%.
- EIDL loans are available with repayment terms up to a maximum of 30 years. The first monthly repayment installment is deferred for one year.
- EIDL Advance offers up to $10,000 grant to applicants. The EIDL Advance application has been integrated into the EIDL loan application. There is no requirement to repay EIDL Advance grants. In addition, applicants may still receive an EIDL Advance even if they are not approved for a loan.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
Here is a link to the EIDL Loan Application: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
The SBA is also assisting small businesses and non-profits with access to the federal forgivable loan program, the Paycheck Protection Program (https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program), which is currently accepting applications until June 30, 2020.
For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.
Source: Petroleum Marketers Association of America