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The EIDL is a low-interest, fixed-rate loan that can provide up to $15,000 in assistance for a small business. SBA’s Economic Injury Disaster Loan (EIDLs) funds come directly from the U.S. Treasury. Applicants do not go through a bank to apply, and instead, apply directly to SBA’s Disaster Assistance Program.

Actual loan amounts are based on the amount of economic injury. These loans provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing because of COVID-19. The EIDL helps meet the necessary financial obligations that your business or private non-profit organization could have met had the disaster not occurred. EIDLs do not replace lost sales or revenue.

For more information go to https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loans.

Applicant must be physically located in the United States or designated territory and suffered working capital losses due to the coronavirus pandemic.

Eligible applicants include

  • Businesses with 500 or fewer employees or defined as small per www.SBA.gov/SizeStandards
  • Cooperatives with 500 or fewer employees
  • Agricultural enterprises with 500 or fewer employees
  • Most private nonprofits
  • Faith-based organizations
  • Sole proprietorships and independent contractors

Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending.

EIDL proceeds can be used to cover a wide array of working capital needs and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments.

Six months of working capital.

COVID-19 EIDLs can be modified by increasing the amount up to 6 months of working capital. An increase can be requested either before or after accepting the loan.

If you were approved for a loan and would like to request additional funds, send an email that states your need for an increase to the loan amount to pdcrecons@sba.gov with the word “INCREASE” in the subject line. Include any additional information that may be helpful for the determination.

  • Credit History – Because EIDL is a government loan, federal regulations require applicants to meet minimum credit standards to qualify. Traditionally, this has been around 620, but SBA will look at extenuating circumstances and consider the impact of the pandemic on the business.
  • Repayment – As with all loans, you will need to prove you have the ability to repay. Repayment term can be as long as 30 years.
  • Collateral – Loans under $25,000 can be unsecured.

Interest rate: 3.75% APR (fixed) for businesses, 2.75% APR (fixed) for non-profits

SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

Business information

  • Contact information and social security numbers for all applicants
  • Employer Identification Number (EIN) for business applicants
  • Insurance information

Financial information

  • e.g. income, account balances and monthly expenses)
  • Know the total  amounts and payments due for debts that will be paid over the next 10 months or longer (i.e. mortgages, student loans, credit cards, etc.)

Other key information:

  • Use Internet Explorer or Mozilla Firefox to apply.
  • Write your password down (or remember it!). You’ll likely need to access the system again.
  • The ‘Help Button’ provides useful information for each page.
  • Use the ‘Save Button’ frequently.
  • Be patient and keep trying if you experience slow load times.
  • If your loan request is denied, you can provide more information
  • You will receive email confirmation that your application has been submitted
  • You will receive an email letting you know that your application is under review.
  • BE PREPARED: You may be contacted by someone from the SBA. Have your monthly expenses and financial projections ready (the SBDC can help with this!)
  • The SBA can be contacted 1-800-659-2955 or at disastercustomerservice@sba.gov.

Avoid COVID-19 scams!

Scammers are using the Small Business Administration’s (SBA) name to con small businesses and individuals during the COVID-19 crisis through phone calls, emails, text messages and letters.

Please note:

  • If you are contacted by someone claiming to be from the SBA, suspect fraud.
  • Emails from SBA or other legitimate government agencies will always end in .gov.
  • There is no cost to apply for a COVID-19 Economic Injury Disaster Loan and SBA will never ask you to provide a credit card.
  • Do not release any private information (social security number, date of birth, etc.) or banking information in response to an unsolicited caller, letter, email, or text.
  • If you are in the process of applying for an SBA loan and receive email correspondence asking for PII, ensure that the referenced application number is consistent with your application number.
  • An SBA logo on an email or webpage does not guarantee the information is accurate or from the SBA.
  • Check for spelling and grammatical errors in an email and be wary of clicking on any links or attachments.
  • For help with applying for an Economic Injury Disaster Loan, call 800-659-2955 or email disastercustomerservice@sba.gov. You can also use a text telephone (TTY) by calling 1-800-877-8339.
  • For inquiries regarding support for small businesses, send an email to answerdesk@sba.gov
  • Visit the Small Business Cybersecurity site to learn more about small Business Cybersecurity tips, common threats, training, and best practices. https://www.sba.gov/business-guide/manage-your-business/small-business-cybersecurity
  • Visit the U.S. Department of Homeland Security’s Cyber Infrastructure site for small business resources. https://w.gov/publication/stopthinkconnect-small-business-resources
  • Trust your instincts! If something seems too good to be true, then it probably is too good to be true.
  • SBA Beware Fraud and Schemes and the SBA Scams and Fraud Alerts Page.


Still have questions?  Request advising here.

Virginia SBDC