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Economic Injury Disaster Loan

Economic Injury Disaster Loan

Interaction with SBA 7(a) Loan Eligibility

The availability of the 7(a) Loan is reduced by the amount of the EIDL, where the EIDL was applied for in relation to COVID-19.

Who is Eligible?

A business with not more than 500 employees;

Any individual who operates under a sole proprietorship, with or without employees, or as an independent contractor;

A cooperative with not more than 500 employees;

An ESOP with not more than 500 employees;

A tribal small business concern, with not more than 500 employees;

Private Non-Profit organizations

Small Agricultural Cooperative

Must have been in operation on January 31, 2020

Must have been impacted by COVID-19, and Loans will correlate to impact

There is no minimum credit score required, however, applicants must have a credit history acceptable to SBA

Emergency Grant

Up to $10,000.00 where needed by business due to issues related to COVID-19

The amount is to be determined by the SBA based on business’ need

The Grant is not required to be repaid.

The Grant reduces the amount of forgiveness available under the 7(a) Paycheck Protection Program.

Uses of Emergency Grant

Providing paid sick leave to employees unable to work due to the direct effect of the COVID–19

Maintaining payroll to retain employees during business disruptions or substantial slowdowns

Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains

Making rent or mortgage payments; and

Repaying obligations that cannot be met due to revenue losses.

Loan Terms

No personal guarantee required on advances and loans of not more than $200,000.00

No requirement that entity cannot obtain credit elsewhere

Business credit check required for loans of $200,000.00 or more

Collateral may be required for all EIDL loans over $25,000

Maximum Interest Rate: NY 3.750 percent.

Repayment terms up to a maximum of 30 years, SBA will determine by borrower