Economic Injury Disaster Loans

If you’ve been impacted by the COVID-19 pandemic, learn more about a COVID-19 Economic Injury Disaster Loan (EIDL).

If you have suffered substantial economic injury and are one of the following types of businesses located in a declared disaster area, you may be eligible for an SBA EIDL:

• Small business
• Small agricultural cooperative
• Most private nonprofit organizations

• Substantial economic injury means the business is unable to meet its financial obligations and pay its regular and necessary operating expenses
• Loss of expected profits or a decline in sales is not considered substantial economic injury
• EIDL provides the necessary working capital to help small businesses impacted by a disaster survive until normal operations resume 
• EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere
• Businesses must meet the following criteria to qualify for economic injury:
  
  • The business was directly impacted by the disaster
  • The business cannot cover expenses due to the disaster and/or debt payments
  • The business was physically located in the declared disaster area

SBA can provide loans to help cover the costs and expenses that your business would have been able to handle if the disaster did not happen. The EIDL amount will depend on how much financial impact you have experienced and your company’s financial needs, even if you didn't suffer any property damage.

A separate SBA Disaster Assistance program known as business physical disaster loans covers property damage. A business may qualify for both an EIDL and a physical disaster loan. The maximum combined loan amount is $2 million. 

• Working capital and normal expenses such as the continuation of health care benefits, rent, utilities, and fixed debt payments
• EIDL funds cannot be used for expanding facilities, buying fixed assets, repairing physical damages, refinancing debt, paying out dividends or bonuses, or paying back loans to stockholders or principals

• First payment deferred for 12 months 
• No interest accrual for the first 12 months
• The interest rate will not exceed 4%

• Up to 30 years, with repayment term to be determined by ability to repay the loan
• No pre-payment penalty or fees

• Required for loans over $50,000
• Real estate is the preferred collateral. Loans of $200,000 or less will not require the owner of the business to use their primary residence as collateral if it is determined the owner has other assets of equal quality and a value equal to or greater than the amount of the loan.

Apply online for an SBA disaster assistance loan. SBA will send an inspector to estimate the cost of damage, once your application is completed and submitted.

Contact the SBA Disaster Assistance Customer Service Center at:

Phone: 800-659-2955
TTY/TRS: 711
Email: disastercustomerservice@sba.gov