COVID-19 Economic Injury Disaster Loan (EIDL)

COVID-19 Economic Injury Disaster Loan (EIDL)

In response to COVID-19, small business owners, including agricultural businesses and nonprofit organizations, in all U.S. states, Washington D.C., and territories, can apply for the COVID-19 Economic Injury Disaster Loan (EIDL). This loan, directly from the Small Business Administration (SBA), must be repaid. It’s a low-interest, fixed-rate, long-term loan to help overcome the effects of the pandemic by providing working capital to meet operating expenses.

Please contact PPG Partners if you would like help applying for a loan.

The following is information from the SBA website regarding the loan terms.

Uses of Proceeds
Working capital to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, and to pay business debt incurred at any time (past, present, or future).

Maximum Loan Amount
$2 million. Note: SBA will begin approving loans greater than $500,000 on October 8, 2021.

Loan Term
30 years.

Interest Rate
Businesses: 3.75% fixed.
Private nonprofit organizations: 2.75% fixed.

Payment Deferment
Payments are deferred for the first 2 years (during which interest will accrue), and payments of principal and interest are made over the remaining 28 years. No penalty for prepayment.

Fees
For loans $25,000 or less: No fees if applying directly through SBA.

For loans greater than $25,000: One-time $100 fee for filing a lien on borrower’s business assets plus costs to file lien on real estate when applicable.

For loans greater than $500,000 where SBA is taking real estate as collateral: One-time $100 fee for filing a lien on borrower’s business assets. Additionally, the borrower will be responsible for recording the real estate lien and paying the associated fees.

Collateral
Required for loans greater than $25,000.

Personal Guaranty
Required for loans greater than $200,000.

Apply for a Loan
Complete your online COVID EIDL application at https://covid19relief.sba.gov/#/.

Apply for an Increase
Complete your request for an increase in your COVID EIDL portal at https://covid19relief1.sba.gov/Account/Login.