Last Updated on July 5, 2024 by Anda Malescu
What is the SBA EIDL loan for Coronavirus and how to apply?
In response to the ongoing Coronavirus pandemic, U.S. Small Business Administration (SBA) has issued in March 2020 disaster declarations of economic injury for entire United States and US Territories for the COVID-19. As a result of the SBA’s disaster declarations nationwide, SBA Economic Injury Disaster Loan (EIDL) has been made available to businesses to help recover from COVID-19, a declared disaster.
The EIDL loans provide small business owners and entrepreneurs with financial resources and support they need to recover from temporary loss of revenue due to COVID-19. The loan proceeds can be used to cover normal operating expenses and working capital, including continuation to cover payroll, inventory, accounts payable, health care benefits for employees, rent, utilities and fixed debt payments.
The EIDL loan provides long-term, low-interest financial assistance for small businesses and non-profits and is a vital economic support for businesses experiencing loss of revenue. The interest rate is 3.75% for small businesses and 2.75% for non-profits. For the EIDL loan, the SBA provides long-term repayment terms up to a maximum of 30 years and the first EIDL loan payment is deferred for 1 year. Terms of the EIDL loan are determined on a case-by-case basis, based upon each borrower’s ability to repay. For more information about EIDL loan eligibility and loan terms, please visit the link here.
How to apply for SBA EIDL loan for COVID-19?
Effective March 16, 2020, businesses in operation on January 31, 2020 can file an EIDL loan application with the SBA until December 31, 2020. Completed applications can be submitted:
- Online at https://covid19relief.sba.gov/#/,
or - By mail at U.S. Small Business Administration,
Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
For further information, you can contact
Alan Escobar
Office of Disaster Assistance
U.S. Small Business Administration
409 3rd Street SW, Suite 6050,
Washington, DC 20416,
Phone (202) 205-6734
Required documents to apply for EIDL loan for COVID-19
With the application for the EIDL loan, you must submit a number of documents provided below. If you fail to submit documents with your EIDL loan application, the loan will be denied. The SBA requires business owners to provide a number of documents at the time of EIDL application, including:
- The application, completed and signed
- Complete copies, including all schedules, of the
most recent federal income tax returns for the applicant business; if not
available, you must provide an explanation - Personal Financial Statement completed, signed,
and dated by the applicant - Schedule of Liabilities listing all fixed debts
At Malescu Law, our business attorneys in Miami, Florida can assist you with preparation and filing of your EIDL loan application, guide you on the supporting documents you must include with your application and advise you on any responses received from the SBA loan, including prepare replies and reconsiderations. Contact now our experienced business and corporate lawyers in Miami, Florida.
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