Everything You Need to Know About Economic Injury Disaster Loan Program
Loan is provided by the Small Business Administration through banks. Up to $2 million. An advance EIDL grant of up to $10,000 may be requested.
Been in business since 1/31/2020.
Had less than 500 employees (full-time, part-time, or other basis).
Restaurants can be measured per physical location.
Up to 30 years
Payments deferred for 1 year.
Interest 3.75% for business, 2.75% for nonprofits.
No loan forgiveness (except $10,000 emergency loan, which must be used for sick and family leave pay, employee retention to prevent business disruptions or substantial slowdowns, meeting increased cost to obtain materials due to interrupted supply chains, rent or mortgage payments, employee benefits, state and local taxes, compensation to sole proprietors or independent contractors).
Personal guarantee if over $200,000.
No prepayment penalties.
EIDL and PPP loans cannot be used for the same expenses.
EIDL application will ask for:
SBA Form 5 (Application).
IRS Form 4506T.
Recent federal income tax returns.
Personal financial statement
SBA Form 2202 or similar schedule of liabilities listing all fixed debt