Article written by:
Dustin Minton, CPA, MBA
   Director, Restaurant Services

On June 15, 2020, the Small Business Administration (SBA) reopened the Economic Injury Disaster Loan (EIDL) application process for qualified businesses. This is welcomed news for businesses that (1) were not eligible for the Paycheck Protection Program (PPP), (2) have determined that the Main Street Lending Program (MSLP) is likely not a good fit, or (3) need financing in addition to the PPP loan to continue business operations. Announced originally in late March 2020, the EIDL is the SBA program that was quickly overwhelmed by the online application process and “crashed” the system multiple times.

Take note that you can apply for the EIDL even if you have received a PPP loan, so long as the funds are not used for the same purposes. Additionally, it is important to realize that an EIDL cannot be forgiven.

It may have been a while since you assessed whether the EIDL was a possible cash flow solution for your business, so we have included an overview of the EIDL program below:

  • Less than 500 EEs or applicable industry size standard determined by the SBA
  • Sole proprietorships, with or without employees
  • Independent contractors
  • Cooperatives and ESOPs with
    < 500 EEs
  • Tribal small business concerns
  • Affiliation rules apply
Loan Amount
  • Up to $2MM based on formula
  • Emergency Advance up to $10,000 available within three days of application
Loan Proceeds Use
  • Payroll, paid sick leave, payables, debt service
  • Up to 1 year
Interest Rate
  • 3.75% for business and 2.75% for nonprofits
  • Up to 30 years
Debt Forgiveness
  • None
Personal Guarantee
  • Waived on advances and loans of $200,000 or less for all applicants
Prepayment Penalties
  • Waived
Credit Elsewhere
  • Waived
Approval Documentation
  • No tax return submission required. Based solely on credit scores or alternative methods to determine ability to pay


If you have questions regarding the EIDL program, please contact Rebekah SmithDustin Minton, or Jeremy Bronson.


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