EIDL & EIDL Emergency Advance
Overview
The EIDL program offers small businesses long-term, low-interest loans to pay off debt or cover coronavirus-related
losses. Thanks to the CARES Act, EIDL applicants may apply for a forgivable EIDL loan advance of up to $10,000.
Am I eligible?
Small businesses with less than 500 employees (including sole proprietorships, independent contractors, and self-
employed persons), private non-profit organizations, or 501(c)(19) veterans organizations affected by COVID-19 are eligible.
How can I use it?
Loan funds can be used as working capital to pay fixed debts, payroll, accounts payable, and other bills that could
have been paid had the disaster not occurred.
You may use the $10,000 loan advance for:
Providing paid sick leave to employees;
Maintaining payroll;
Meeting increased costs to obtain materials;
Making rent or mortgage payments; or
Repaying obligations that cannot be met due to revenue losses.
How much can I borrow through the EIDL program?
Eligible small businesses may qualify for an EIDL Emergency Advance of up to $10,000 and EIDL loan of up to $2 million.
To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount
of the advance will be determined by the number of the small business’ pre-disaster (i.e., as of January 31st, 2020)
employees. The advance will provide $1,000 per employee up to a maximum of $10,000.
Can the EIDL loan be forgiven?
With the exception to the EIDL advance, an EIDL loan must be repaid. The interest rate for small
businesses is 3.75 percent and the interest rate for non-profits is 2.75 percent for terms up to 30 years.
What’s the deadline?
December 31st, 2020
Where do I apply?
To apply for a COVID-19 EIDL and loan advance, visit https://covid19relief.sba.gov.
/covid19relief.sba.gov
/covid19relief.sba.gov