How to apply for the SBA’s EIDL Loan

How to apply for the SBA’s EIDL Loan

As we look at resources available to small business owners during the COVID-19 pandemic, let’s look at how to apply for the SBA’s Economic Injury Disaster Loan (EIDL).  This is specifically for qualified entities with direct impact. Applications open since June 15.

The loan application is available at SBA Disaster Loan Assistance. The estimated time the SBA suggests for completing the application is two hours and ten minutes. However, our team went through the process and it took just the ten minutes. It is clearly laid out, and may depend on your company structure.

What you need to know

  • EIDL loans may be used to pay debts, payroll, accounts payable and other bills that can’t be paid due to the disaster’s impact. Also, it must be items that are not already covered by a PPP loan.  The interest rate is 3.75% for small businesses.  The interest rate for non-profits is 2.75%.
  • To keep payments affordable, SBA offers loans with long repayment terms. They are up to a maximum of 30 years. Plus, the first payment defers for one year.
  • Although the Advance portion is no longer available, the Loan portion of the EIDL program continues to have funds at very affordable terms. It includes a 3.75% interest rate for small businesses and 2.75% for non-profit organizations. And, a 30-year maturity, plus automatic deferment of one year before monthly payments begin.  
  • SBA’s EIDL is just one piece of the expanded focus of the federal government’s coordinated response.

Applying for the SBA’s EIDL, Economic Injury Disaster Loan

To speed the application process, have your FEIN and Social Security number readily available, as well as business income prior to the COVID-19 pandemic.

  • Business with not more than 500 employees can apply for EIDL
  • Agricultural enterprise with not more than 500 employees.
  • Individual who operates under a sole proprietorship, with or without employees, or as an independent contractor.
  • Cooperative with not more than 500 employees.
  • Employee Stock Ownership Plan (ESOP), as defined in 15 U.S.C. 632, with not more than 500 employees.
  • Tribal small business concern, as described in 15 U.S.C. 657a(b)(2)(C), with not more than 500 employees.
  • Business, including an agricultural cooperative, aquaculture enterprise, nursery, or producer cooperative (but excluding all other agricultural enterprises), with more than 500 employees that is small under SBA Size Standards found at
  • Business with more than 500 employees that is small under SBA Size Standards found at
  • Private non-profit organization that is a non-governmental agency or entity that currently has an effective ruling letter from the IRS granting tax exemption under sections 501(c),(d), or (e) of the Internal Revenue Code of 1954, or satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law, or a faith-based organization.

Upon completing the application, a processed confirmation states that “You will not receive an email confirmation of your application submission. You will be notified through the email address you submitted when we are processing your application”. They also indicate that you write down your application number or print the page for your records.

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