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.

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