The Economic Injury Disaster Loan (EIDL) program – what you need to know

The Economic Injury Disaster Loan (EIDL) program is a federally funded program that provides financial assistance to businesses and non-profits in the aftermath of natural disasters. The loan amount ranges from $2,000-$200,000 depending on the size of the business and how long they have been open. It is now known as the COVID-19 EIDL Loan program in response to the COVID-19 pandemic.

Who qualifies for a COVID-19 Economic Injury Disaster Loan?

Small business owners and some agricultural businesses in the US and territories can apply for a low-interest loan due to COVID-19.

Agricultural businesses that have 500 or fewer employees are eligible due to the new authority granted by Congress in response to the pandemic.

To see if you qualify, visit this link: https://www.benefits.gov/benefit/1504

How to apply for a COVID-19 Economic Injury Disaster Loan

Go to this link to apply: https://covid19relief.sba.gov/#/

The deadline to apply is December 31, 2021.

What is the benefit of applying for a COVID-19 Economic Injury Disaster Loan?

An EIDL loan can help you meet the financial needs that your business or private, non-profit organization could have met if it had not been for the COVID-19 pandemic. It can provide large loan amounts, low-interest rates, longer repayment terms, no fees, and can be used for working capital.

The drawbacks of applying for a COVID-19 Economic Injury Disaster Loan

The process has a lengthy application process, requires a credit check, the possibility of needed collateral, and usage requirements.

Resource links

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan
https://www.sba.gov/document/support-faq-regarding-covid-19-eidl

At Halsey Resources, we are here to help our bookkeeping clients navigate the options available to them for EIDL loans and grants. Contact us if we can be of any assistance to you.