Economic Injury Disaster Loans and Advances

This page will be updated continuously to reflect the most recent information. This page was last updated on May 5, 2020.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily expands eligibility for U.S. Small Business Administration’s Economic Injury Disaster Loans (EIDL) program and creates loan advances of up to $10,000 to borrowers applying for EIDLs—within three days of submitting their application. Due to high demand, SBA is experiencing delays in getting EIDL Advances to borrowers. The loan advance does not need to be repaid, even if the borrower is subsequently denied an Economic Injury Disaster Loan. The advance may be used for payroll, sick leave, increased production costs due to supply chain disruptions and other operating expenses that could have been met, had the disaster not occurred.

Expanded eligibility and loan advances are only available between January 31, 2020 and December 31, 2020. If businesses have already applied for an Economic Injury Disaster Loan prior to the loan advance going into effect, the business must reapply through the streamlined application process to access a loan advance.

Who is eligible for Economic Injury Disaster Loans?

All businesses and organizations must have been in businesses by January 31, 2020.

  • Sole proprietorships (without employees or with 500 or less employees)
  • Independent contractors with 500 or less employees
  • Cooperatives and employee owned businesses (ESOPs) with less than 500 employees
  • Tribal small businesses with less than 500 employees.
  • Private non-profits of any size.
  • Small businesses and small agricultural cooperatives that meet SBA employee size standards. Click here for SBA’s size standard tool.
  • Agricultural businesses under 500 employees.

What are the terms of Economic Injury Disaster Loans?
EIDLs are lower interest loans of up to $2 million, with loan terms up to 30 years. There is no cost to apply. The interest rate for small businesses is 3.75 percent and the interest rate for eligible private non-profits is 2.75 percent. Principal and interest payments may be deferred for up to 4 years.

How do I apply for an Economic Injury Disaster Loan?
Borrowers can apply for an SBA EIDL and loan advance here on SBA’s website.

If I apply for an EIDL, am I still eligible to apply for other SBA loan programs?
Yes. If borrowers apply for an EIDL and loan advance, they can still apply for a loan through the Paycheck Protection Program. Please be aware that the loan amount forgiven by the Paycheck Protraction Program will decrease by the amount awarded on the Loan Advance (up to $10,000).

Additional Information:
Borrowers seeking additional assistance on the loan application or needing help creating business disaster plans should contact the nearest Small Business Development Center, Women’s Business Center, SCORE chapter or SBA District Office. To find one near you, please use SBA’s local assistance finder tool here. For further information on new or updated SBA programs, please click here.