How does the SBA’s Economic Injury Disaster Loan (EIDL) work?

The Economic Injury Disaster Loan is a low-interest, long-term business loan underwritten by the federal government. The intent is to help business struggling due to loss of income as the result of a large-scale disaster. For this reason, the applicant must have a fixed presence in a declared disaster area. EIDL loans have been granted within certain geographical areas for hurricanes and earthquakes. COVID-19 being a pandemic, pretty much the entire country qualifies.

  • Up to $2 million
  • 2.75% – 3.75% interest
  • Terms up to 30 years

EIDL loans can be used for

  • Paid sick leave to employees unable to work due to the direct effect of COVID-19.
  • Maintain payroll
  • Increased costs due to supply chain disruption
  • Rent or mortgage payments
  • Repaying obligations that cannot be met due to revenue loss

Download the SBA’s official EIDL overview