Apply online for disaster loan assistance at your own convenience through SBA’s secure Disaster Loan Assistance website.

As well, EIDLs are open to nonprofits. Per the SBA, most private nonprofits should qualify for an EIDL. Other businesses qualifying for EIDLs include faith-based organizations and sole proprietors and independent contractors.

Loan Approval Conditions

The following loan approval conditions reflect some relaxing of traditional EIDL stipulations:

• You can borrow up to $200,000 without a personal guarantee.
• First-year tax returns are not required and approval can be based on credit score.
• You do not have to prove you could not get credit elsewhere.
• Loans of $25,000 or less require no collateral. For loans above $25,000, a general security interest in business assets can be used. You must allow the SBA to review your business tax records.

What Type of Business is Eligible for the EIDL Program?

The eligibility requirements for the EIDL are slightly different than those for the PPP and are intended to provide economic support to small businesses to help overcome a temporary loss of revenue resulting from the pandemic; and other than the grant portion described below, does not rely on payroll numbers to calculate the loan amount.

The EIDL Advance

As part of the EIDL an advance of up to $10,000 is available for those who apply for the EIDL. The advance portion of the loan originally was based on the number of employees in your business: $1,000 per employee, up to 10 employees (or $10,000).  However, Congress later authorized Targeted EIDL Advances of up to $10,000, with an additional $5000 to certain hardest-hit businesses.

Business Owners Information

Here you will need to indicate whether your business is fully owned by another business. If owned by individuals, you need to provide information on each owner who has a 20% stake in the business or more. Information requested will include:

• Home address
• Phone number
• Social Security number
• Date and place of birth
• Citizenship status

When to Expect Your Funds

The EIDL process takes a minimum of 21 days to complete according to the SBA. Not surprisingly, the actual length of time is on a case-by-case basis, depending on whether there are questions or additional information is required.

Conclusion:

Don’t confuse the new Targeted EIDL Advance with the former EIDL Advance, which is no longer available. You cannot apply for the Targeted EIDL Advance. If you qualify, the SBA will contact you.