The Small Business Administration (SBA) has received authorization to provide assistance to small businesses and private non-profits that have been or will be potentially impacted by COVID-19 through the Economic Injury Disaster Loan (EIDL) Program.
This Program can provide low interest loans of up to $2M to small businesses and private non-profits. If you are or expect to be an affected organization in Cook County, now a declared disaster area, you can apply online through the U.S. Small Business Administration. Application processing will proceed immediately. The application filing deadline is December 18, 2020.
- The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 3.75%.
- The law authorizes loan terms up to a maximum of 30 years. The SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.
- The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by the SBA.
- Collateral is required for all EIDL loans over $25,000. The SBA takes real estate as collateral when it is available. The SBA will not decline a loan for lack of collateral, but the SBA will require the borrower to pledge collateral that is available.
- The EIDL Program cannot be used to refinance long term debts.