Economic Injury Disaster Loan Update
SBA is currently accepting new COVID-19 Economic Injury Disaster Loan (EIDL) applications from all qualified small businesses, including private nonprofit organizations.
As of July 29, 2021, Connecticut entities have received $2.5 billion in Economic Injury Disaster Loans comprising 36,998 loans. Full data report here: EIDL data.
The following is a synopsis of the COVID-19 EIDL, Targeted EIDL Advance, and Supplemental Targeted Advance. All of the following information and more can be found here www.sba.gov/EIDL. Indeed, these COVID-19 programs are extended through the end of the year. New applicants can apply here: EIDL Application or call 1-800-659-2955.
The COVID EIDL program is a Federal small business loan program which provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue.
EIDL proceeds can be used to cover a wide array of working capital needs and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. The loan amount equals twenty four months of economic injury with a maximum loan amount of $500,000, in the following terms of
- 3.75% for businesses (fixed)
- 2.75% for nonprofits (fixed)
- 30 years
No pre-payment penalty or fees.
Top Questions for EIDL Applicants
Q: What is status of my existing application?
A: Log in to your COVID-19 EIDL applicant portal where you find information about your application status.
Q: What do I need to submit with my application?
A: Simply complete your business or nonprofit’s information on the streamlined loan application at sba.gov/relief. SBA’s processing staff may request additional information.
Q: I need help completing the application. Can the SBA help me?
A: You can contact SBA’s Customer Service Center at 1-800-659-2955. Also, SBA Resource Partners such as a local Small Business Development Center (SBDC) or Women’s Business Development Center (WBC) can assist you with completing and submitting the COVID EIDL application at no cost. To find the SBA Resource Partner nearest you, visit sba.gov/LocalAssistance.
Targeted EIDL Advance
The Targeted EIDL Advance provides funds of up to $10,000 (these funds do not need to be repaid) to applicants who:
- Are in a low-income community. To help applicants determine if they are in a low-income community as defined in section 45D(e) of the Internal Revenue Code, a mapping tool (sbaeidl.policymap.com/app) is available. The business address must be in a low-income community to qualify so SBA encourages potential applicants to check the map to see if they meet the low-income community eligibility requirement before they apply; and
- Can demonstrate more than 30% reduction in revenue during an eight-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction; and
- Have 300 or fewer employees.
Business entities normally eligible for the EIDL program are eligible to apply. This includes sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
Supplemental Targeted Advance
The Supplemental Targeted Advance provides a supplemental payment of $5,000 that does not have to be repaid. Even if you have previously received the original EIDL Advance in the full amount of $10,000, you may be eligible for the Supplemental Targeted Advance if you meet eligibility criteria. The combined amount of the Supplemental Targeted Advance ($5,000) with any previously received EIDL Advance or Targeted EIDL Advance ($10,000) will not exceed $15,000.
Completing the Targeted EIDL Advance application is a requirement to be considered for the Supplemental Targeted Advance.
Before applying, make sure your small business meets the following eligibility criteria:
- Is located in a low-income community. Use this mapping tool to see if your business is in a low-income community as defined in section 45D(e) of the Internal Revenue Code. The business address must be in a low-income community to qualify, so SBA encourages you to check the map before you apply; and
- Can prove more than a 50% economic loss during an eight-week period beginning on March 2, 2020, or later, compared to the same period of the previous year. Applicants need to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) from January 2019 to the current month-to-date; and
- Has 10 or fewer employees.
Top Questions for EIDL Advance Programs
Q: I cannot find my Targeted EIDL Advance invitation email.
A: Contact SBA’s Disaster Customer Service Center at 1-800-659-2955 or by email at TargetedAdvance@sba.gov to request a new invite. Please note that this process may take several business days.
Q: I need a reconsideration/reevaluation of a declined application for a Targeted EIDL Advance or a Supplemental Targeted Advance.
A: Applicant should send an email to TargetedAdvanceReevaluation@sba.gov.
Q: What is the status of my application?
A: To check the status of an existing application, you can log in to your COVID-19 EIDL applicant portal where you find information about your application status.
SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).