It does not appear that I can apply for an EDIL loan now, is that correct?

Announced on May 4th, the SBA re-opened their application for only agricultural business applications due to limitations in funding availability. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. At this point it is unclear if the application will re-open for other industries.

Who is eligible for the loans?

• A small business with less than 500 employees
• A non-profit organization exempt under section 501(c)(d) or (e)
• A small business with over 500 employees that otherwise meets SBA's industry size standard
• An individual who operates as a sole proprietor or independent contractor
• A tribal business concern with less than 500 employees or that meets the SBA's size standard

Who provides the loans?

• EIDL loans are provided directly from the US Treasury through the Small Business Administration (SBA).

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I have heard about the Paycheck Protection Loans and the Economic Injury Disaster Loans. What other debt relief is the SBA offering to my business?

There is currently other relief available to those that already have existing SBA loans or enter into new SBA loans before September 27, 2020.

What exactly is the other relief being offered by the SBA?

The SBA is currently offering the following:

For current SBA loans that are 7(a), 504 or micro loans, the SBA will automatically pay the principal, interest and fees fora period of six months.

For new SBA loans that will be 7(a), 504 or micro loans issued before September 27, 2020, the SBA will automatically pay the principal, interest and fees for a period of six months.

The payments that the SBA is making – will they be tacked on to the end of the loan, or will my loan balance be reduced by the amount of payments being made?

Your loan balance will be reduced.  It is not a deferral, but rather they are forgiving six months of payments on these loans.