Economic Injury Disaster

Economic Injury Disaster Loans (EIDL)

Economic Injury Disaster Loans (EIDL) are small business loans provided by the Small Business Administration (SBA) to help small businesses and non-profit organizations that have suffered substantial economic injury as a result of a declared disaster. These loans are intended to help businesses with working capital needs, such as paying fixed debts, payroll, and other bills that can’t be paid because of the disaster’s impact.

The EIDL program offers long-term, low-interest loans to small businesses and non-profit organizations that are unable to obtain credit elsewhere. The maximum loan amount is $2 million with a repayment term of up to 30 years.

To qualify for an EIDL, the business must be located in a declared disaster area and have suffered substantial economic injury as a result of the disaster. They also need to demonstrate that they have been in operation for at least one year before the disaster and that they were financially stable before the disaster.

The application process for an EIDL can be completed online and requires the submission of financial statements and tax returns, as well as a description of the disaster’s impact on the business. The SBA will review the application and determine the loan amount and terms.

It’s important to note that an EIDL loan is separate from the SBA’s Paycheck Protection Program (PPP), which is a loan designed to help small businesses keep their employees on payroll during the pandemic. Businesses may apply for both programs but can only use the proceeds from each loan for specific expenses.

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