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SBA EIDL

SBA Economic Injury Disaster Loan Program

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 advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

Small businesses who believe they may be eligible for an SBA EIDL, should visit the SBA’s website where they can directly apply for assistance. The online application is the fastest method to receive a decision about loan eligibility.

If you have any questions, please contact 1-800-659-2955 or (TTY) (800) 877-8339 

Manténgase actualizado sobre cómo la SBA está ayudando a las pequeñas empresas que han sido afectadas por COVID19. 

SBA.gov (en espanol) 


Frequently Asked Questions

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  • SBA’s Economic Injury Disaster Loans (or working capital loans) are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations.

    This includes:
    •Businesses directly affected by the disaster
    •Businesses that offer services directly related to the businesses in the declaration
    •Other businesses indirectly related the industry that are likely to be harmed by losses in their community
    (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product.)

  • Examples of eligible industries include but are not limited to the following:

    • hotels 
    • recreational facilities
    • charter boats
    • manufactures
    • sports vendors
    • owners of rental property
    • restaurants
    • retailers
    • souvenir shops
    • travel agencies
    • wholesalers  
    • Located (physical presence) within the declared disaster area
    • Have suffered, or are likely to suffer, substantial economic injury as a result of the disaster
    • Do not have Credit Available Elsewhere
    • The size of the applicant alone (without affiliates) must not exceed the size standard for the industry in which the applicant is primarily engaged
    • The size of the applicant combined with its affiliates must not exceed the size standard designated for either the primary industry of the applicant alone or the primary industry of the applicant and its affiliates, whichever is higher.
    • Must be an independently owned and operated business
  • The applicant business must have a physical presence in the declared disaster area. An applicant’s economic presence alone in a declared area does not meet this requirement. The physical presence must be tangible and significant.  Merely having a P.O. Box in the disaster area would not qualify as a physical presence.

    • Lending and Investment Concerns (except for real estate investments held for rental)
    • Multi-level sales distribution (Pyramid) Concerns
    • Speculative Activities
    • Non-profit Organizations that are not considered a Private Non-Profit
    • Consumer and Marketing Cooperatives (other cooperatives and small agricultural cooperatives are eligible)
    • Not a small business concern (except for PNP of any size)
    • Gambling concerns ( concerns that derive more than one-third of their annual gross revenue for legal gambling activities)
    • Casinos, racetracks, etc.( businesses whose purpose for being is gambling
    • Loan packagers who derives more than one-third of their annual volume from the preparation of applications seeking financial assistance from SBA)
    • Religious organizations
    • Political or lobbying concerns
    • Pawn shops (when 50% or more of previous year’s income was derived from interest)
    • Real estate developers
    • Life insurance companies
    • Concerns engaged in illegal activities (as defined by Federal guidelines)
    • Government-owned concerns (except for businesses owned or controlled by a Native American tribe)
    • Concerns with principals incarcerated, on parole or probation
    • Concerns engaged in live performances of, or the sale of products, services, of a prurient sexual nature
    • Businesses considered as hobbies
    • Concerns not located in the declared disaster 
    • Concerns determined to have credit available elsewhere
    • Concerns involved in change in ownership situations. 
    • Concerns established post-disaster
    • PNPs engaged in aquaculture 
    • Feedlot operators
    • Agricultural enterprises
    • Members of congress
  • Credit History: Applicants must have a credit history acceptable to SBA. 

    Repayment: SBA must determine that the applicant business has the ability to repay the SBA loan.

    Eligibility: The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.

  • The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.

    Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources. 

     

  • These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion.

     

    • Economic Injury Disaster Loans over $25,000 require collateral.
    • SBA takes real estate as collateral when it is available.
    • SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available. 
    • Does not require primary residence in Texas.
  • SBA’s Economic Injury Disaster Loan (EIDLs) funds come directly from the U.S. Treasury.  Applicants do not go through a bank to apply.  Instead apply directly to SBA’s Disaster Assistance Program at: DisasterLoan.sba.gov 

    There is no cost to apply.
    There is no obligation to take the loan if offered.
    The maximum unsecured loan amount is $25,000.

    Applicants can have an existing SBA Disaster Loan and still qualify for an EIDL for this disaster, but the loans cannot be consolidated.

  • The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this disaster is 3.75 percent (for profit) and 2.75 percent (for non-profit). 

  • None if the loan is under $200,00. However, if over then guarantee form all 20 percent or greater owners. 

  • The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.

  • Existing SBA Disaster or Business loans do NOT make you ineligible. Loans cannot be consolidated. 

    • You cannot use your EIDL for the same purposes as your PPP loan
    • Complete and submit everything required (delays occur due to missing/incomplete information) 
    • If more funds are needed, you can submit supporting documents and request an increase
    • If less funds are needed, you can request a reduction 
    • If denied, you will be given up to six (6) months to provide new information and a written reconsideration request 
    • If you were in the middle of an application. when the old site crashed, you will need to apply on the site: https://covid19relief.sba.gov/#/ 
  • Loan Processing Decision:

    • Information verified; you may be asked for additional information 
    • Forecasts completed to determine the EIDL amount
    • A loan officer may contact you
    • Decision normally takes up to 4 weeks

    Loan Closes and Funds Disbursed

    • Sign and Submit loan documents
    • Initial disbursement of $25,000 within 5 days
    • Case Manager assigned that will help you with the rest 
  • Yes, they are out there and in some cases, doing so in the name of SBA. 

    When applying for SBA’s Disaster Economic Injury Loan 

    • There is no immediate deadline for an EIDL application
    • It does not cost anything to apply, download or to access SBA Forms and papers.  Our resource partners (such as SBDC / SCORE / WBC) are able to assist with the EIDL application at no cost.
    • No credit card is required
  • Please contact SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov. The call center is open Monday – Sunday, 8a.m. – 8p.m. ET.

Intuit Aid Assist

A free service for everyone, helps U.S.-based businesses, self-employed, contractors, freelancers, and gig workers understand different business relief programs.

Click on button below and tell Intuit about your business, they will let you know your loan eligibility, and then find out where to apply.

SBDC Assistance

Still have small business questions related to SBA EIDL or CARES Act? Complete our online intake form and we will be in touch!


Funded in part through the State of Texas and a Cooperative Agreement with the U.S. Small Business Administration. The support given by the U.S. Small Business Administration through such funding does not constitute an expressed or implied endorsement of any of the cosponsors’ or participants’ opinions, findings, conclusions, recommendations, products or services. Reasonable accommodations for persons with disabilities or limited English proficiency will be made if requested at least two weeks in advance. Contact Texas State University SBDC by phone at 512.420.9379 or via email at sbdc@txstate.edu.