A Complete Guide to Economic Injury Disaster Loans
Money is exactly what makes your business a success. If it wasn't for your sales, you wouldn't be able to pay your employees and you wouldn't be able to keep your business afloat.
During uncertain economic times, you may find that your business is struggling with major monetary loss. With an economic injury disaster loan, you can get your business back on track. So, what are Economic Injury Disaster Loans, you ask?
Continue reading to learn what they are and how they can help your business.
What Is an Economic Injury Disaster Loan?
An Economic Injury Disaster Loan (EIDL) is a part of the economic relief plan due to the impact that the coronavirus pandemic has had on the economy. They're administered by the Small Business Administration.
The loan is meant to help small businesses meet their financial responsibility as they would have if the pandemic had not happened. The EIDL can help you continue running your business during this uncertain time.
It will not replace any loss of revenue due to economic injury.
Who Can a EIDL Help?
The Small Business Administration (SBA) allows small businesses with 500 or fewer employees, including agricultural businesses and private nonprofit organizations to receive this financial loan based on certain requirements.
In order for these businesses to be eligible, they must have been impacted by the economic disaster and be located in an area declared by the government to have been impacted. The business must have been in existence prior to January 31, 2020.
The loan amount is based on the economic injury and the financial needs of the business. The SBA will only allow a small business to get an EIDL if they've exhausted all of their other credit options.
You can check if you are eligible for an Economic Injury Disaster Loan at benefits.gov.
How Can It Get Your Business Back on Track?
A business owner can apply for an EIDL to use it towards working capital and normal operating expenses, such as continuing health care benefits, utilities, rent, and debt payments.
The loan has provided up to $2 million in aid from the pandemic's financial impact on the business. The current cap on the loan is $150,000. The loan length for EIDLs is 30 years.
Repayments get deferred for one year, though interest still accumulates over that time. You won't get penalized for paying the loan back early. The fees and the repayment of the loan depend solely on the business's ability to pay back the monetary amount.
You can apply for an EIDL through the Small Business Administration (SBA).
Get the Help You Need
You don't need to worry that your business is going to go under due to economic injury in these uncertain times. You can get the help you need by applying for the Economic Injury Disaster Loan to cover your financial losses.
Contact Cornerstone Capital Advisors today for more information about the Economic Injury Disaster Loans.