SBA’s Economic Injury Disaster Loans and Advance Program Reopened to All Eligible Small Businesses and Non-Profits Impacted by COVID-19 Pandemic
Small Business Administration • June 16, 2020
To further meet the needs of U.S. small businesses and non-profits, the U.S. Small Business Administration reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal
to all eligible applicants experiencing economic impacts due to COVID-19 today.
“The SBA is strongly committed to working around the clock, providing dedicated emergency assistance to the small businesses and non-profits that are facing economic disruption due to the COVID-19 impact. With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and non-profits will be able to receive these long-term, low interest loans and emergency grants – reducing the economic impacts for their businesses, employees and communities they support,” said SBA Administrator Jovita Carranza. “Since EIDL assistance due to the pandemic first became available to small businesses located in every state and territory, SBA has worked to provide the greatest amount of emergency economic relief possible. To meet the unprecedented need, the SBA has made numerous improvements to the application and loan closing process, including deploying new technology and automated tools.”
SBA’s EIDL program offers long-term, low interest assistance for a small business or non-profit. These loans can provide vital economic support to help alleviate temporary loss of revenue. EIDL assistance can be used to cover payroll and inventory, pay debt or fund other expenses. Additionally, the EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.
SBA’s COVID-19 Economic Injury Disaster Loan (EIDL) and EIDL Advance
- The SBA is offering low interest federal disaster loans for working capital to small businesses and non-profit organizations that are suffering substantial economic injury as a result of COVID-19 in all U.S. states, Washington D.C., and territories.
- These loans may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
- To keep payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year.
- In addition, small businesses and non-profits may request, as part of their loan application, an EIDL Advance of up to $10,000. The EIDL Advance is designed to provide emergency economic relief to businesses that are currently experiencing a temporary loss of revenue. This advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan.
- SBA’s EIDL and EIDL Advance are just one piece of the expanded focus of the federal government’s coordinated response.
- The SBA is also assisting small businesses and non-profits with access to the federal forgivable loan program, the Paycheck Protection Program, which is currently accepting applications until June 30, 2020.
For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.
Executive Director David Cleveland has named Luke Kimbrough as the new Regional Lending Manager for the East Texas Council of Governments (ETCOG). In this role, Kimbrough will oversee the day-to-day operations of the East Texas Regional Development Company’s (ETRDC) small business loan programs. He will work closely with the ETRDC Board, manage financial and administrative services, and ensure the program follows all state and federal guidelines. Kimbrough brings with them more than seven years of experience in banking and employee benefits. Before accepting this position, Kimbrough served as CEO of the Banking Center at Citizens Bank in Gladewater. His previous roles include Vice President at First National Bank of Hughes Springs in Liberty City, Benefits Consultant for Colonial Life in Longview, and Branch Manager for Regions Bank in Kilgore. Before his banking career, Mr. Kimbrough served for several years as the Director of Public Information and Regional Services at ETCOG. “It is a great pleasure for me to welcome Luke back to the ETCOG Family! His exceptional work in the banking community for many years position him for even greater success with our ETRDC Business Lending Programs. I am glad he is back and am even more excited to see the steady growth and expansion of one of our most important economic development programs that will undoubtedly occur under his leadership!” said Executive Director David Cleveland. “I am excited to come back to ETCOG and the East Texas Regional Development Company,” said Kimbrough. “Spending the last decade in banking, I have gained much more experience in financial analysis and commercial lending. There is a lot of work ahead to help the businesses and economy of East Texas.” The ETRDC is a nonprofit organization that is certified and regulated by the U.S. Small Business Administration. Its main purpose is to support local economic development by helping small businesses access long-term, fixed-rate financing. ETRDC offers financing through the SBA 504 Loan Program and Chapman Loan Program.
The East Texas Regional Development Company will sponsor an East Texas Lenders Roundtable hosted by UT Tyler-Longview Small Business Development Center (SBDC) and the Small Business Administration to discuss SBA 7a loans and 504 lending basics. Expert panelists will discuss various loan programs and resources to help businesses increase their portfolios and obtain financing.
The Office of the Governor has announced the launch of a new recovery program, the Texas Travel Industry Recovery Grant Program (TTIR), which will begin accepting applications on July 6, 2022. The purpose of this program is to provide grants to Texas businesses in the tourism, travel, and hospitality industry that were negatively impacted due to COVID-19.
