5/4/2020 New Eligibility for IED Loan applications for eligible agricultural businesses sba.gov EIDL
On Monday, May 4 at 9 a.m. Pacific Time the SBA Economic Injury Disaster Loan (EIDL) portal reopened for Agribusinesses who were excluded in the first round.
Please note, if you recently visited this site, your cookies may prevent you from seeing the update. Try refreshing or opening the link in a different browser. The EIDL portal is optimized for Microsoft Internet Explorer and the new Microsoft Edge browser.
Please note local SBA offices cannot check or access your EIDL application status. Please contact our SBA Office of Disaster Assistance directly at 1-800-659-2955 (TTY: 1-800-877-8339) or email email@example.com.
Those who applied for SBA EIDL before March 27 and had an application number that began with a “2”, contact your regional SBA. https://www.sba.gov/offices/district/wa/seattle
SBA Economic Injury Disaster Loan EIDL
EIDL advance loan application with advance. Qualifying applicants may receive up to a $10,000 advance prior to approval of total loan request. A portion may be forgivable. The initial advance application has been simplified since March 30th.
EIDL Information and link to application sba.gov
Electronic SBA application EIDL Loan Portal sba.gov
SBA EIDL application alternative sba.gov – All needed forms with Box upload option. Only use this if SBA electronic application is disabled. This is a good place to download all forms needed.
Washington SBDC SBA Disaster loan program webinar
New material coming
Who is eligible?
- Small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations
- Business must be a small business defined by SBA 500 or fewer employees
- Businesses directly affected by the disaster
- Businesses that offer services directly related to the businesses in the declaration
- Other businesses indirectly related the industry that are likely to be harmed by losses in their community
- Must be physically located in a declared county and suffered working capital losses due to the disaster.
- Home based is considered a physical location
- SBA must determine that the business is able to repay the loan
- Applicants must have a credit history acceptable to SBA
Loan funds use
- Working capital loan can pay overhead expenses, payroll, accounts payable, other bills that could have been paid had the disaster not occurred.
Things to consider
- Check with your lender if applying for any additional loans.
- If you have any outstanding business loans, Check your “Business Loan Agreement”. You may need your lenders approval to take on new debt. *Note – not all business loans will have this document.
- Lender may discuss options to modify or defer monthly payments on outstanding loans.
- Prepare forms
- Electronic Application is easier, faster and more accurate
- Google Chrome Browser not recommended
- Fill out form
- Save your application number given after clicking submit
- Information including address must match your tax returns. If moved, submit change of address to IRS.
- Check ‘Economic Injury’ Loan as what you are applying for
- Projected losses are determined by SBA
- Contact information must match your federal tax returns
- If tax returns reference other businesses you own, submit those returns also
- Save at every prompt. Website may go down due to heavy volume
- Be sure all information is completed prior to submission. Missing information results in delays
- SBA paper forms https://disasterloan.sba.gov/ela/Information/PaperForms
- Electronic funds deposit will be faster than mailing
- Applicant can choose not to accept all or part of EIDL funds
- Freedom of Information Act information sba.gov
Excepts from SBDC webinar 4/3/2020
When the CARES Act became law on Friday, March 27, 2020, significant new initiatives were authorized to help small businesses impacted by COVID19. The SBA, the SBDC and other federal agencies are diligently working to finalize the program guidelines required to rollout these programs. The information below is current as of the morning of Friday, April 3, 2020.
Economic Injury Disaster Loan (EIDL) – The focus of this tool is to provide for operating cost assistance during the time period of the Disaster Declaration. The web portal to apply for this loan can be accessed here – https://covid19relief.sba.gov/#/. SBA Customer Service can be called at ________________. Customer service calls will be categorized as Tier 1 or Tier 2. If Tier 2 is needed up front, press #2 to get customer care person and ask to move to tier 2.
Lender for the EIDL is the SBA not the banks.
Available for most for-profit businesses including self-employed and independent contractors. Exclusions are Farms, Gambling, Religious, Some Charitable and Cannabis entities. Owners of rental properties are eligible for lost rents.
Amount up to $2 million, Term is either 15 or 30 years, Interest rate is 3.75% for for-profit and 2/75% for non-profit. Payments will start a year after the date of the approval of the loan.
Collateral – Unsecured up to $25K, Available collateral will be requested for over $25K. Lack of collateral will not by itself disqualify applicants. Real Estate is not being taken for collateral.
Payment Deferral Period is 1 year. The EIDL is not a forgiveness loan.
No cost to apply. Processing time can be 3-5 weeks although some who qualify easily are quicker.
Loan availability is January 31st, 2020 to December 31st, 2020. Increase in loan amounts can be applied for later if the initial loan amount does not cover all of the Economic Injury.
Loan Usage is for operational expenses only such as payroll, general expenses, accounts payable, lines of credit, bridge loans, returns of customer deposits, etc. The EIDL cannot be used to pay down long-term debt. Businesses that have enough cash to weather the crisis will not be eligible.
Loan Crossover or Stacking – It looks like business owners can apply for the EIDL and the PPP but the funds cannot be used to cover the same purposes.
Information and documents that might be needed – Financial reports (P&L, Balance Sheet, Cash Flow Statement, A/P and A/R) from January 31, 2019 to January 31, 2020. 2019 and/or previous year’s tax returns may also be requested/used.
Credit Scores are not a dis-qualifier for the applicants as long as negative credit information can be reasonably explained. Ability to repay the loan is a key qualifier and will involve analysis of the borrower’s ability to repay.
Economic Injury Disaster Loan – Advance. This is a feature included at the end of the EIDL application. It gives you the chance to obtain a $10,000 advance with no strings attached. This loan is instantly forgivable which makes it a grant. It does require completion of the EIDL loan. Funds are to be deposited into the bank account that you provide within 3-5 business days.