SBA Economic Injury Disaster Loan
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 Economic Injury Disaster Loan (EIDL):
- Small business
- Small agricultural cooperative
- Small business engaged in aquaculture
- Most private nonprofit organizations
Loan Amounts and Use
Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business Administration.
Eligibility and Terms
Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. A business may qualify for both an EIDL and a physical disaster loan. The maximum combined loan amount is $2 million.
How to Apply:
- Apply: Begin by first registering with FEMA at disasterassistance.gov or by calling (800) 621-FEMA (3362). Then apply at disasterloanassistance.sba.gov, in person at any local disaster center, or by calling our Customer Service Center at (800) 659-2955 to request an application by mail. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. There is no need to wait for insurance claims to settle or to receive FEMA grants or contractor estimates before applying. You are under no obligation to accept the loan if approve
- Application processed: Application packages and required documents (including credit and income information) will be reviewed for completeness. Eligible applications are sent to SBA’s loss verification team and property inspections may be necessary to decide the total physical damage. A loan officer takes over your case to work with you to receive any additional information, review insurance or other recoveries, and recommend a loan amount. The SBA strives to make loan determinations within 2–3 weeks after receiving complete application packages.
- Loan closure & disbursement: Loan closing documents are prepared for your signature. After receipt of the signed documents, an initial disbursement, up to the following amounts, will be made within 5 business days: up to $25,000 for physical damage; up to $25,000 for economic injury (working capital), which can be in addition to the physical damage disbursement for eligible businesses. An SBA case manager will work with you to answer questions and help you meet all loan conditions. The case manager schedules the disbursement of any remaining loan amount. Loan may be increased up to 20% after closing due to changing circumstances, such as unexpected repair costs or if you receive additional insurance proceeds for the same purposes.