UPDATE – SBA Economic Injury Disaster Loans – COVID-19 Crisis

UPDATE!!! – North Carolina has just been approved for SBA Economic Injury Disaster Loans. Economic Injury Disaster Loans (EIDL) are loans guaranteed by the SBA available to businesses, profit and non-profit. Eligibility depends upon whether the business is located in a federal disaster declaration area. Businesses can apply for an EIDL of up to two million dollars for secured loans and $25,000.00 for unsecured loans. Collateral is required for any loan over 25k. The loan does not need to be collateralized fully. For for-profit businesses, the interest rate is 3.75% and for non-profit businesses, the interest rate is 2.75%. Repayment terms can be as along as 30 years. The loans can be used for fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. A business does not have to show it cannot obtain a loan elsewhere. This is a working capital loan, so SBA will look at your working capital needs prior to COVID-19 to determine the loan amount. EIDLs are not to replace lost sales or expansion, but for working capital/costs. The SBA is encouraging all businesses to apply NOW, do not wait to see the full extent. The SBA is building deferment periods into the loans. The website is: https://disasterloan.sba.gov/ela/Account/Login