Economic Injury Disaster Loans and Advances

This page will be updated continuously to reflect the most recent information. This page was last updated on May 20, 2021.

*** WHAT IS NEW IN THE AMERICAN RESCUE PLAN ***  

The American Rescue Plan provides an additional $15 billion nationwide of targeted funding for the Small Business Administration’s (SBA) economic injury disaster loans (EIDL) emergency advance grants.  Details are below. 

Please note:  SBA is currently limiting consideration for advance grants to those who applied for EIDL assistance on or before December 27, 2020.  This is to prioritize applicants who received capped advances or were unable to obtain an advance after funding ran out in July 2020.  If you meet this description, do not submit a duplicate EIDL application.  SBA will contact qualified applicants directly. 

Set-aside for entities eligible under the December COVID relief law 
$10 billion of the new funding in the American Rescue Plan is reserved for entities that are eligible for the program under the criteria established in the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (COVID relief law).  Under the COVID relief law, an entity is eligible for an EIDL emergency advance grant if it: 

  • Employs no more than 300 employees; 
  • Has suffered an economic loss greater than 30 percent; 
    • Gross receipts must have declined at least 30 percent during an 8-week period between March 2, 2020, and December 31, 2021, relative to a comparable 8-week period immediately preceding March 2, 2020, or during 2019; and 
  • Is located in a low-income community, as defined for the new markets tax credit (NMTC) in 26 USC § 45D(e): 
    • (A) a population census tract for which the poverty rate is at least 20 percent, or 
    • (B) 
      • (i) in the case of a tract not located within a metropolitan area, the median family income for the tract does not exceed 80 percent of the statewide median, or 
      • (ii) in the case of a tract located within a metropolitan area, the median family income for the tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income. 
    • You can review a map of NMTC-eligible census tracts here. 
  • If an eligible entity has already received an EIDL emergency grant, it is now only eligible to receive the difference between $10,000 and the amount it previously received.  If an eligible applicant did not previously secure a grant before funding ran out, they are eligible for the full $10,000. 

With this $10 billion set-aside, SBA will prioritize make-whole payments for entities that fit the above criteria, applied for an EIDL advance before December 27, 2020, and received either a capped advance or no advance. SBA will contact qualified entities directly. 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily expanded eligibility for U.S. Small Business Administration’s Economic Injury Disaster Loans (EIDL) program and created loan advances of up to $10,000 to borrowers applying for EIDLs. Last summer, the SBA announced it had fully allocated all available funds for the EIDL Advance program, and that it was unable to issue additional advance grants.

Small businesses can still apply for loans through the EIDL program. However, EIDL advance grants are currently closed, and SBA is administering the recently enacted $20 billion for Targeted EIDL Advance based on limited eligibility. A breakdown of the differences between EIDL and EIDL Advance can be found on page 2 of this FAQ document from the SBA.

Who is eligible for Economic Injury Disaster Loans?
Small businesses in all U.S. states and territories can apply for a low-interest EIDL loan (as noted above, this is different than the EIDL Advance). Agricultural businesses with 500 or fewer employees are also eligible, including those engaged in certain agricultural and farming related activities as defined by section 18(b) of the Small Business Act.

What are the terms of Economic Injury Disaster Loans?
EIDLs are lower interest loans of up to $2 million, with loan terms up to 30 years. There is no cost to apply. The interest rate for small businesses is 3.75 percent and the interest rate for eligible private non-profits is 2.75 percent. Principal and interest payments may be deferred for up to 4 years.

How do I apply for an Economic Injury Disaster Loan?
Borrowers can apply for an SBA EIDL loan here. Eligible applicants for the EIDL Targeted Advance program need not take any action – SBA will reach out to those who qualify.

If I apply for an EIDL, am I still eligible to apply for other SBA loan programs?
Yes. If borrowers apply for an EIDL and loan advance, they can still apply for a loan through the Paycheck Protection Program. Please be aware that the December 2020 COVID-19 relief law repealed an earlier provision that required borrowers to deduct the amount of their EIDL advance grant from their PPP forgiveness total.

Additional Information
More information can be found here, and the SBA’s most recent FAQs on the EIDL program can be found here.