Economic Injury Disaster Loan
In order for businesses to remain open for business, the Federal government began to offer special loans designed to be used as working capital. Through the Small Business Administration, businesses can apply for an Economic Injury Disaster Loan (EIDL).
In April of 2020, the 1st phase of EIDL funding was offered in the form of a grant up to $10,000. Unfortunately this grant was offered on first come basis for a limited time.
Currently the Small Business Administration is offering the EIDL until November 2023.
For Profit Businesses and Non-Profit Business can apply for the EIDL
The following are the incentives of the EIDL:
30 year loan term
3.75% fixed rate on For Profit Businesses
2.75% fixed rate on Non-Profit Businesses
No prepayment penalty or fees
One year grace period before payment period begins (you can make voluntary payments during this one year grace period)
The following are the requirements to qualify for the EIDL:
Minimum 620 FICO Score
Loans over $25,000 require collateral of assets. Such assets cannot be sold or disposed of during the repayment period
Loan proceeds must be used as working capital for everyday business expenses. Assets cannot be acquired with the loan proceeds.
For more information on the EIDL and to apply