SBA Economic Injury Disaster Loan (EIDL) Program

The SBA’s Economic Injury Disaster Loan (EIDL) Program now includes assistance for small businesses affected by COVID-19, with low-interest loans and grants to provide support and to help businesses overcome related revenue losses. 

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Overview

Overview

The SBA’s Economic Injury Disaster Loan (EIDL) Program provides small businesses (500 employees or less) and nonprofits with low-interest 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 due to COVID-19. EIDL interest rates are 3.75% for small businesses and 2.75% for not-for-profits.

As part of the COVID-19 relief effort, borrowers can also apply for an Emergency EIDL Grant from the SBA to request an advance on the loan of up to $10,000. 

  • SBA will determine the amount of grant based on the information provided by the borrower.
  • SBA must distribute the Emergency EIDL within three days of the request.
  • The advance will be considered an Emergency EIDL grant.
  • The borrower will not be required to pay back the Emergency EIDL Grant even if they are subsequently denied for an EIDL loan.
  • In advance of disbursing the advance payment, the SBA will require that the borrower file a certification, under penalty of perjury, that they are eligible to apply for an EIDL loan.
  • The Emergency EIDL Grants will end on December 30, 2020.
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Eligibility

Eligibility

The following types of businesses are eligible to apply for the EIDL:

  • Small businesses;
  • Small agricultural cooperatives,
  • Small aquaculture businesses;
  • Most private non-profit organizations
  • Tribal businesses;
  • Cooperative;
  • ESOPs with fewer than 500 employees;
  • Any individual operating as a sole proprietor; and
  • An independent contractor during January 31, 2020 to December 31, 2020.

The SBA generally defines a small business as an entity with 500 employees or less. There are, however, specific size standards depending on the type of business. You can look up the standards for your specific business by NAICS code here.

How to Apply

  • Apply directly with the Small Business Administration. Applications can be submitted here
  • Deadline to submit your application is December 21, 2020.
  • Businesses are encouraged to submit applications as soon as possible.

Additional Resources

Organizations Available to Assist

New York's statewide community network of Small Business Development Centers, Entrepreneurship Assistance Centers and Community Development Financial Institutions are available to help guide your business through the SBA loan application process. Business leaders, lawyers and nonprofit professionals have also volunteered to offer loan application guidance.

NY Small Business Development Centers (SBDC): The New York Small Business Development Center (NYSBDC) provides small business owners and entrepreneurs in New York with the highest quality, confidential business counseling, training, and business research at no cost.

Entrepreneurship Assistance Centers (EAC) Contact List: Entrepreneurship Assistance Centers (EAC) provide instruction, training, technical assistance and support services to new and aspiring entrepreneurs in local communities statewide.

Community Development Financial Institution (CDFI) Contact List: CDFIs are local financial service providers with locations throughout New York State, and often are the sole provider of banking and other financial services in communities that are not served by traditional banks and financial institutions.

COVID-19 Business Mentor NY Volunteer Task ForceNew York State, business leaders and law firms  have partnered to enlist industry volunteers to help businesses with guidance on SBA loan applications.

Limited Scope Pro Bono Legal Advice for PPP LoanLawyers from New York firms are ready and able to answer questions from small businesses and nonprofits, and offer resources and guidance to assist with applications in connection with the Paycheck Protection Program.

New York Council of Nonprofits: Empire State Development has partnered with the New York Council of Nonprofits to provide free Paycheck Protection Program and Emergency Injury Disaster Loan consulting and support to all 501(c)3 nonprofits in New York state. An email hotline and individual consultations are available.