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