Update on EIDL on 5/5/2020
Legislation passed 4/23 provided additional funding to the EIDL ($50B) and EIDL advance ($10B) programs. In addition, it relaxed eligibility requirements so agricultural businesses including businesses engaged in the legal production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)) are eligible for the EIDL and EIDL advance. These businesses would still need to meet the criteria of having 500 or fewer employees.
The portal is now open for ag businesses to apply a this site: https://www.sba.gov/page/disaster-loan-applications. Any assistance you can provide in getting the word out is greatly appreciated.
Note: Only agricultural businesses are eligible to apply at this time. Non-agricultural businesses who make application at this time will have their applications returned.
The current online loan portal originally opened on 3/30/20. SBA asked that applicants who applied prior to that date “reapply” in the streamlined loan portal with the promise that they would not lose their place in the queue of applications they had received. These applicants would have applied either through the original electronic loan application or the box.com process where they uploaded .pdf application forms and would have an application number starting with a “2”.
The purpose of this request was that the new streamlined process offers much more efficient underwriting and disbursement and would get the funds in the hands of those approved for loans more quickly.
Not all applicants “reapplied” and SBA intents on closing the loop to ensure those businesses have their loan applications processed as quickly as possible. To that end, the EIDL application portal is available to those businesses that need to reapply in addition to agricultural enterprises.
If you have applied for EIDL and you have not already, go into the portal and “reapply”. You will not lose your spot in the queue and your “reapplication” will be matched to the time and date of initial application. You should receive an updated application number beginning with the number “3”.
The U.S. Small Business Administration is offering designated states and territories – Illinois included – low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the coronavirus (COVID-19). SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses; 2.75% for non-profits.
Important information to know in advance about the SBA’s EIDL program:
- Businesses located in Illinois, who have suffered substantial economic injury due to the novel coronavirus (COVID-19) outbreak may now apply for these funds.
- To process this loan, you must have a credit history acceptable to SBA *and* be able to determine that you have the ability to repay the loan.
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
- Businesses do not go through a lender to apply. All applications must be submitted through the SBA website at https://disasterloan.sba.gov/apply-for-disaster-loan/index.html or via paper forms, which can be found at https://disasterloan.sba.gov/ela/Information/PaperForms.
- There is no cost to apply. There is no obligation to take the loan if offered.
SBA Disaster Loan PowerPoint Presentation
Additionally, our local Illinois Small Business Development Center (SBDC) in Champaign, IL, provides one-on-one counseling, technical assistance, training seminars, information provision, networking opportunities, business development and real estate expertise for business owners, startups and entrepreneurs. If you need further guidance or assistance on all SBA-related items, please contact Don Elmore at 217-378-8535 for more information.