Economic Injury Disaster Loans and Loan Advance

covid update 2Update January 2022:

As of January 1, 2022, the SBA will not be accepting applications for new COVID EIDL loans or advances.   

  • The U.S. Small Business Administration (SBA) will accept and review reconsideration and appeal requests for COVID EIDL applications received on or before December 31 if the reconsideration/appeal is received within the timeframes in the regulation.  This means six months from the date of decline for reconsiderations and 30 days from the date of reconsideration decline for appeals - unless funding is no longer available.
  • Borrowers can request increases up to their maximum eligible loan amount for up to two years after their loan origination date, or until the funds are exhausted, whichever is soonest.  

The SBA continues to offer other funding options for small businesses including traditional SBA loans.  You can find more information regarding the US SBA and resources on their website.

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May 2020

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

On Monday June 15, the U.S. Small Business Administration reopened the Econonic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19.

The SBA’s Economic Injury Disaster Loan and Loan Advance (EIDL) Program provides small businesses and non-profits with low-interest loans that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing due to COVID-19. 

As a part of EIDL, you can access up to a $10,000 loan advance within three days of your application being accepted. This advance will act as a grant and does not need to be repaid. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of the advance will be determined by the number of the small business’ pre-disaster (i.e., as of January 31, 2020) employees. The advance will provide $1,000 per employee up to a maximum of $10,000. 

This advance may be used to:
·       Keep employees on payroll
·       Pay for sick leave
·       Meet increased production costs due to supply chain disruptions
·       Pay business obligations, including debts, rent and mortgage payments

SBA Loan Eligibility, Recommendations, and FAQ’s, click here.

SBA Colorado Lenders, click here.

To apply for a COVID-19 Economic Injury Disaster Loan, click here.

For paper & mail-in options instructions, click here.

Please find this step-by-step guide of the application process helpful to assist you through the separate forms and application.

Small Business Resources 

The Colorado Small Business Development Center Network offers a wide variety of resources and holds many events during the year.  Check out their Events schedule to find events and workshops near you.