Small Business Association's
Economic Injury Disaster Loan
The WeShare Team is here to help you navigate the SBA's Economic Injury Disaster Loan (EIDL), which was expanded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
What is the Economic Injury Disaster Loan?
The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to COVID-19. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation to health care benefits, rent, utilities, and fixed debt payments.
Who is Eligible?
In general, all of the following entities that have suffered substantial economic injury caused by a disaster provided they were in existence on January 31, 2020:
Businesses with 500 or fewer employees.
Cooperatives, ESOPs, and tribal small businesses with fewer than 500 employees.
Sole proprietors.
Independent contractors.
Most private nonprofits.
What are the Loan Parameters?
The maximum EIDL is a $150,000 working capital loan at a rate of 3.75% for businesses and 2.75% for non-profits with up to a 30-year term.
Payments on Coronavirus EIDL loans are deferred for one year.
*Approval can be based on a credit score and no first-year tax returns are required.
Borrowers do not have to prove they could not get credit elsewhere.
No collateral is required for loans of $25,000 or less. For loans of more than $25,000, general security interest in business assets will be used for collateral instead of real estate.
The borrowers must allow the SBA to review its tax records.
What are the Requirements?
Alongside your basic business information such as your EIN, business address, and organization type, the SBA application will also ask for Gross Revenue and Cost of Goods Sold for 12 months prior to the disaster. The WeShare team is here to support you through the process however we can.
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