Client Alert: SBA Loan Program for Businesses Economically Impacted by Coronavirus
The U.S. Small Business Administration's (“SBA”) Economic Injury Disaster Loan (“EIDL”) program provides low interest loans to small businesses suffering substantial economic injury as a result of the Coronavirus.
The small business or private non-profit must have its principal office located in a state that has been declared a disaster area, which, currently, include D.C., Delaware, Maryland, Pennsylvania and Virginia. Loans under the EIDL program are for up to $2,000,000 with interest rates capped at 3.75% for small businesses, and 2.75% for private non-profits. Loan proceeds may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of Coronavirus’s impact.