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Economic Injury Disaster Loan Summary


This program is currently suspended by the SBA.

Under the Economic Injury Disaster Loan (EIDL) Program, the SBA offers loans of up to $2 million for small businesses to recover from temporary losses following a statewide economic injury declaration, including losses they are experiencing due to the COVID-19 outbreak. EIDL Loans are not forgivable and are available to pay fixed debts, payroll, accounts payable, and other bills that cannot be otherwise paid. The CARES Act (the Coronavirus Aid, Relief and Economic Security Act) updated the EIDL Program through December 31, 2020.


While a business’s application for an EIDL Loan is pending, the business may apply for a grant of up to $10,000 to be paid within three days of application. Grants do not need to be repaid, even if the application for an EIDL Loan is denied


In addition to small businesses, private nonprofits, small agricultural cooperatives, sole proprietorships (with or without employees, and independent contractors), and businesses with 500 or less employees are eligible.

Eligible businesses may apply for an EIDL loan if it suffered substantial economic injury as a direct result of COVID-19 and was in existence on January 31, 2020.

Maximum Loan Size

Up to $2 million.

Costs Eligible Under EIDL

Loan proceeds may be used for COVID-19 related expenses such as:

  • Paid sick leave to employees unable to work due to the direct effect of COVID-19
  • Maintaining payroll to retain employees
  • Meeting increased costs to obtain materials unavailable from the business’s original source because of supply chain issues, rent or mortgage payments
  • Repaying certain obligations that cannot be met due to revenue losses
  • Non-COVID-19 expenses including working capital necessary until resumption of normal operations and expenditures necessary to alleviate economic injury.

Loan Terms

For small businesses impacted by COVID-19, the interest rate will be 3.75% and for nonprofit organizations impacted by COVID-19, the interest rate will be 2.75%.

Relationship with the Paycheck Protection Program (PPP)

If a borrower has received an EIDL Loan unrelated to the COVID-19 outbreak, it may apply for a PPP Loan due to COVID-19. Businesses that receive an EIDL Loan in connection with the COVID-19 outbreak may not receive a PPP Loan for the same purpose, but they may refinance their existing EIDL Loan with a PPP Loan if they meet the eligibility requirements. Grants awarded under the EIDL Program are subtracted from amounts ultimately forgiven under the PPP. Click here to learn more about the Paycheck Protection Program.

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