Small businesses seeking guidance on the available COVID-19 emergency aid and relief can browse this extensive and in-depth answers to FAQs regarding the Small Business Administration Disaster Loan Assistance Program

Small Business Administration (SBA) Disaster Loan Assistance Program

What are Economic Injury Disaster Loans?

SBA Economic Injury Disaster Loans are loans are available for small businesses that sustain economic injury as a direct result of a disaster. These working capital loans are made to businesses without credit available elsewhere to help pay ordinary and necessary operating expenses that would have been payable barring the disaster.

EIDLs are lower interest loans of up to $2 million, with principal and interest deferment at the Administrator’s discretion, that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.

What are Emergency Economic Injury Grants?

Emergency Economic Injury Grants provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.

Who is eligible for an SBA Economic Injury Loan?

Small business owners in all U.S. states, Washington D.C., and territories with 500 or fewer employees are eligible to apply including:

  • Sole proprietorships, with or without employees
  • Independent contractors
  • Cooperatives and employee owned businesses
  • Tribal small businesses

Small business concerns and small agricultural cooperatives that meet the applicable size standard for SBA are also eligible, as well as most private non-profits of anysize.

Are non-profits that aren’t 501(c)(3) still eligible for an EIDL and a grant?

Yes, if you are a private non-profit with an effective ruling letter from the IRS, granting tax exemption under sections 501(c), (d), or (e) of the Internal Revenue Code of 1954, or if you can provide satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law. However, a recipient that is principally engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs, whether in a religious or secular setting, or primarily engaged in political or lobbying activities is not eligible to receive an EIDL. If you are uncertain whether you qualify, please consult with legal counsel to determine whether your organization meets program criteria.

Who is eligible for an Emergency Economic Injury Grant?

Those eligible for an EIDL and who have been in operation since January 31, 2020, when the public health crisis was announced.

How long are Emergency Economic Injury Grants available?

January 31 – December 31, 2020.The grants are backdated to January 31, 2020 to allow those who have already applied for EIDLs to be eligible to also receive a grant.

What are the terms?

Businesses that can show they have less sales and a lack the working capital because of the virus to continue at their full operating pace can apply for the loan with a rate set quarterly at 3.75 percent. The loan extends to nonprofits as well, with an interest rate of 2.75 percent, one point lower than for-profit companies.

Do SBA Loans require collateral?

Businesses looking for a loan of $25,100 or lower won’t be required to put up collateral. Anything over that amount will require a conversation with the SBA about collateral. Regulations are changing every day but they’re becoming more lenient, not more stringent. These are working capital and cashflow loans, based on a business’ ability to repay.

How long does it take to receive funding?

Funds from loan advances of up to $10,000 will be made available within three days of a successful application and will not have to be repaid.

Because this is a declared disaster, businesses don’t have to go to a bank for an SBA loan. SBA is lending this money directly to businesses and the normal underwriting requirements aren’t necessary. The processing time is to get a business an approval in at least two weeks.

If I get an EIDL and/or an Emergency Economic Injury Grant, can I get a PPP loan?

Whether you’ve already received an EIDL unrelated to COVID-19 or you receive a COVID-19 related EIDL and/or Emergency Grant between January 31, 2020 and June 30, 2020, you may also apply for a PPP loan. If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance amount received under the Emergency Economic Injury Grant Program would be subtracted from the amount forgiven in the PPP. However, you cannot use your EIDL for the same purpose as your PPP loan. For example, if you use your EIDL to cover payroll for certain workers in April, you cannot use PPP for payroll for those same workers in April, although you could use it for payroll in March or for different workers in April.

How do I know if my business is a small business?

Please visit to find out if your business meets SBA’s small business size standards. You will need the 6-digit North American Industry Classification Code for your business and your business’s 3-year average annual revenue.

How does the CARES act impact the SBA Loan eligibility requirements?

  • Typical SBA loan eligibility requires that the borrower be unable to obtain credit elsewhere — this requirement is waived under the Paycheck Protection Program.
  • Personal guarantee and collateral requirements of a traditional SBA loan have also been waived
  • “Payroll costs” also has a much more expanded definition under CARES than it did previously

How does a business apply?

To apply for a COVID-19 Economic Injury Disaster Loan, please visit:

Your SBA District Office is an important resource when applying for SBA assistance.

Can anyone help with the application?

Yes, SBA resource partners are available to help guide you through the EIDL application process. You can find the nearest Small Business Development Center (SBDC), Women’s Business Center, or SCORE mentorship chapter at

The Orlando Economic Partnership and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.