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Help for Business Owners: The Economic Injury Disaster Loan (Part 2)
Frank Malara • May 6, 2020

Please note: This information is valid and up to date as of April 29, 2020.

The first round of funding for the Economic Injury Disaster Loan (EIDL) was fully allocated, but the President signed H.R. 266 on April 24, 2020, increasing the total authorized funding of the program to $20 billion, to remain available until funds are depleted. 

Please continue to check back as changes and updates are made to the federal program.   

If you haven’t already read Part 1 of this series, please take a look here.

An EIDL helps businesses maintain a reasonable capital to meet current financial obligations. 

The Small Business Administration’s (SBA) disaster loans are the primary form of federal assistance for private sector disaster losses. Unlike the PPP , the loan is available directly from the federal government, and is the only form of SBA assistance that is not limited to small businesses.   

The loan amount is based on the amount of economic injury, the applicant’s credit score, and is capped at $2 million. There are no upfront fees or early repayment penalties. The interest rate is 3.75 percent.  EIDLs less than $200,000 do not require a personal guarantee.

A $10,000 emergency grant cash advance was previously available to applicants, but it is unclear if it remains available. 

Note: Applications are being processed in a first come, first served basis. 

  1. You can apply for an EIDL online with the US Small Business Administration .
  2. You will need to complete a two-part verification process to ensure your business falls within the parameters of the EIDL and to certify that your business is not engaged in certain disqualifying activities.
  3. For the remainder of your application, you will need the following information:
    • The legal and trade names of your business. 
    • The date your business was founded.
    • Your business’s Federal EIN or your Social Security Number.
    • Names, contact information, and Social Security Numbers for each owner, along with the percentage of business ownership. 
    • Gross revenue and cost of goods or services sold for the 12 months prior to January 31, 2020.
    • Number of employees.

We are here for you. 

Call (914-946-2889) or email us at Francis J. Malara or Anne Penachio with any questions or for a free consultation. 

Additional Resources

Interested in the Paycheck Protection Program? Read about here.

If you still need to lay off or furlough employees, check out our unemployment post .

Get more information about unemployment benefits from the New York Department of Labor .

Do you have employees taking Families First leave? Read our Families First post and review the Department of Labor’s Families First Q&A here.

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