Economic Injury Disaster Loans
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What is a COVID EIDL loan?
COVID EIDL loans are distinct and different from regular Disaster Loan Program loans. “COVID EIDL” stands for COVID-19 Economic Injury Disaster Loan. In response to the COVID-19 pandemic, SBA was given the authority to make low-interest fixed-rate long-term COVID EIDL loans to help small businesses and other entities overcome the effects of the pandemic by providing borrowers with working capital to meet ordinary and necessary operating expenses.
The program ends December 31, 2021 or when funds are exhausted, whichever occurs sooner.
COVID-19 Economic Injury Disaster Loan (EIDL)
This loan provides economic relief to Small Businesses, Nonprofit Organizations and Churches that are currently experiencing a temporary loss of revenue. FORWARD COSULTING is working with small businesses, non-profits & churches helping them obtain close to 1.5 million dollars in SBA EIDL & PPP Loans since April 2021.
Loan directly from SBA that must be repaid; low-interest, fixed-rate, long-term loan to help overcome the effects of the pandemic by providing working capital to meet operating expenses.
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