The COVID-19 Economic Injury Disaster Loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll. First Draw PPP Loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.

  • PPP loans have an interest rate of 1%.
  • Loans issued prior to June 5, 2020 have a maturity of two years. Loans issued after June 5, 2020 have a maturity of five years.
  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (between 8 weeks and 24 weeks).
  • No collateral or personal guarantees are required.
  • Neither the government nor lenders will charge small businesses any fees.
In response to COVID-19, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for the COVID-19 Economic Injury Disaster Loan (EIDL).
  • Purpose: To meet financial obligations and operating expenses that could have been met had the disaster not occurred
  • Loan Amount:
    • For loans approved starting the week of April 6, 2021: 24-months of economic injury with a maximum loan amount of $500,000.
    • For loans approved prior to the week of April 6, 2021, see loan increases.
  • Terms:
    • 3.75% for businesses (fixed)
    • 2.75% for nonprofits (fixed)
    • 30 years
    • No pre-payment penalty or fees
  • Use of Funds: Working capital and normal operating expensesExample: continuation of health care benefits, rent, utilities, fixed debt payments.
  • Collateral Requirements:
    • Required for loans over $25,000
    • SBA uses a general security agreement (UCC) designating business assets as collateral, such as machinery and equipment, furniture and fixtures, etc.
  • Forgivable:
    • NO – EIDL Loan
    • YES – EIDL Advance* (*Advance funds have been fully allocated and are not currently available
  • Maturity: 30 years
  • Payment:
    • Set up online payments through OR mail payments to:U.S. Small Business Administration
      721 19th Street
      Denver, CO 80202
    • Be sure to include EIDL loan number on mailed-in checks.

Program Deadline

December 31, 2021
Important Next Steps
  • Review Loan Qualifications
  • Understand Loan Terms
  • Apply for the EIDL
Visit SBA Website