The U.S. Small Business Administration (“SBA”) confirmed that certain applicants for its Economic Injury Disaster Loans (“EIDL”) must reapply using a revamped website, which launched earlier this week. Loan application numbers that begin with a “2” need to reapply. Loan application numbers beginning with “3” are considered current. Here is the link to the new
application
:
https://covid19relief.sba.gov/#/
.
In another important development, it seems the SBA’s original position regarding ineligibility of businesses with credit may have changed to eliminate other available credit as a knock out factor. Not only does that criteria not appear on the current website, it is not listed on the revised application form.
By way of background, the EIDL for the Coronavirus Disaster Relief has been available since last month. The EIDL loan offers up to $2 million in assistance per applicant. The EIDL loan may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses, and 2.75% for not-for-profits. The EIDL has long-term repayment options, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
Additionally, applicants may apply for an EIDL advance grant of up to $10,000. The $10,000 does not need to be repaid even if the applicant is subsequently denied the EIDL loan.
For specific SBA EIDL questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail:
disastercustomerservice@sba.gov
.
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If you have questions or would like additional information, please contact EGS partner Mitchell F. Borger at
mborger@egsllp.com
or the primary EGS attorney with whom you work.
