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EIDL Loans, EIDL Grant, and other Options

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EIDL Loans, EIDL Grant, and other Options

We care about you during the unprecedented challenges of the COVID-19 crisis. We are monitoring the legislative changes and analyzing them with respect to their impact on you and your organizations. The SBA is working on guidelines to administer these new programs. As soon as we have more information we will share. 

Sharing an important update from the SBA:
We know you are facing challenging times in this current health crisis. The U.S. Small Business Administration is committed to help bring relief to small businesses and nonprofit organizations suffering because of the Coronavirus (COVID-19) pandemic. 

On March 27, 2020, President Trump signed into law the CARES Act, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). This Advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.

If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application.

In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.

Constant Contact has been up and down over the last few days. As a backup please check our website for the most recent updates and/or our Facebook page.
https://lfsbdc.org/has-your-business-been-impacted-by-covid-19/ 

SBAs Economic Injury Disaster Loan (EIDL) program summary:
Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred. Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private non-profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship. There is no prepayment penalty. First payment not due for 12 months after approval however interest starts to accrue at time of cash disbursement. There is no fee to apply however there may be some closing costs.

Other Potential Resources:


Other Ideas/Suggestions:
  • Contact creditors now to ask for extensions. Communicate before bills become due.
  • Are there ways you can collaborate with other small business owners?
  • Explore ways to conduct business online.
  • What are you an expert at doing? Help others with your experience/expertise at this time.
  • Reach out to your best customers personally not via bulk email. 
  • Are there reasons why people could donate money to your business to perform a service or offer a product to those in need or to companies or essential personnel who are still working?

Please know that we are here for you. Don’t hesitate to reach out if you have specific questions, concerns, or thoughts. Or, if you just want to say hello.

Christine Kriz
LFSBDC Director
ckriz@lfcc.edu

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