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January 11, 2021

Frequently AskeD QUESTIONS

Who is eligible for the loans?

A small business or 501c(3) non-profit with less than 500 employees
A small business with over 500 employees that otherwise meets the SBA's industry size standard
A small business with over 500 employees that otherwise meets SBA’s alternative size standard
A small business with over 500 employees in the Food/Beverage and Hospitality industries
An individual who operates as a sole proprietor or independent contractor
A tribal business concern or 501c(19) Veterans Organization that meets the SBA’s size standard

Is the 500 employees noted above FTEs or Total employees?

For purposes of determining eligibility for the loan, it is 500 employees / jobs, whether they are full-time, part-time, or other. The number of employees is not based on FTEs for loan eligibility purposes.

My business has over 500 employees. Does that mean we are not eligible for the loan?

No, it does not. There are 3 ways a business with over 500 employees can be eligible for the loan:

The Company meets the SBA’s industry size standard based on revenues. For more information and to check if your business meets this standard, click: SBA Eligibility Standards
The Company meets the SBA’s alternative size standard. Companies with less than $15M of tangible net worth and average net income the last two years of not more than $5M qualify under this standard.
The Company’s NAICS code starts with a 72, Accommodation and Food Services.

Additional Frequently Asked Questions

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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Additional Frequently Asked Questions

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.