Small Business Administration Loans Available in All 50 States
March 23, 2020
By: Elizabeth Amandus Baker
Earlier this month, Congress authorized up to $7 billion in Economic Injury Disaster Loans (EIDLs) through the United States Small Business Administration to throw a lifeline to businesses struggling economically due to COVID-19. For a state’s citizens to qualify for EIDLs, the state must first obtain a formal disaster declaration from the SBA. As of yesterday, the SBA granted disaster declarations for all fifty states.
Companies throughout the United States can now apply for EIDLs through the SBA website (here). Companies must have 500 or fewer workers to qualify. EIDLs are capped at $2 million, have up to a thirty-year term, and have a 3.75% interest rate - much lower than a typical business loan. Applicants must demonstrate acceptable credit history and an ability to repay the loan. For loans over $25,000, the SBA requires collateral, such as real estate, to secure repayment – loans will not be declined for failure to provide collateral, but collateral must be pledged if available. The SBA generally takes two weeks to decide whether to grant an EIDL application.