SBA Economic Injury Disaster Loans


The U. S. Small Business Administration (SBA) has begun to offer federal disaster loans to small businesses suffering “substantial economic injury” as the result of the coronavirus epidemic. Economic Injury Disaster Loans (EIDLs) are a low-interest, cost-effective way for businesses to secure working capital during this declared disaster and are part of a greater push by the federal government in conjunction with the SBA to help these businesses survive and recover.


Frequently Asked Questions:


Is my business eligible?

According to the SBA, EIDLs are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations directly or indirectly affected by the disaster. Examples of such industries include food and hospitality, travel and charter, retailers and wholesalers, and recreation, among others.

How large will my loan be?

The SBA is providing loans of up to $2 million to eligible organizations. An interest rate of 3.75% for small businesses and 2.75% for nonprofit organizations are applied with terms of up to 30 years. Final loan amounts are based on the size, business type, and financial resources of the organization and applicants are asked to self-certify that they are a “small business” in the application process.

Where can I use these funds?

Disaster loans are meant to cover basic expenses that would otherwise have been paid had the disaster not occurred such as payroll, accounts payable, and certain fixed debts. They are not to be used to replace lost profits or expansion costs.

Do EIDLs require collateral?

Any EIDL amounts over $25,000 typically require collateral. This can be in the form of pledged inventory, receivables, and/or general security interest in fixed assets if necessary. For the coronavirus related EIDL the SBA does not currently accept real estate as collateral.

Where do I apply?

Applicants interested in securing an EIDL do not go through a bank to apply but should apply directly to the SBA via their website at: For more information, visit:

Although this fluid situation has created uncertainty for employers and employees, at GranthamPoole, we are committed to staying informed, being available and thinking creatively to help see your business through. We can assist you in all phases of the EIDL loan application process. Please contact your GP advisor or request a consultation to get started.

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