Small Businesses & Private Non-Profits Can Apply For Federal Disaster Loans

The Small Business Administration (SBA) has received authorization to provide assistance to small businesses and private non-profits that have been or will be potentially impacted by COVID-19 through the Economic Injury Disaster Loan (EIDL) Program.

This Program can provide low interest loans of up to $2M to small businesses and private non-profits. If you are or expect to be an affected organization in Cook County, now a declared disaster area, you can apply online through the U.S. Small Business Administration. Application processing will proceed immediately. The application filing deadline is December 18, 2020.

Below are some quick facts about the EIDL program. You can review the full declaration fact sheet here.

  • The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 3.75%.

  • The law authorizes loan terms up to a maximum of 30 years. The SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.

  • The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by the SBA.

  • Collateral is required for all EIDL loans over $25,000. The SBA takes real estate as collateral when it is available. The SBA will not decline a loan for lack of collateral, but the SBA will require the borrower to pledge collateral that is available.

  • The EIDL Program cannot be used to refinance long term debts. 

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