How is the Eidl Loan Amount Determined?

The Eidl Loan Amount is Determined by the Small Business Administration (SBA). The SBA will review your application and determine the amount of the loan.

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The SBA’s Economic Injury Disaster Loan (EIDL)

What is the EIDL Loan?

The Economic Injury Disaster Loan is a working capital loan program implemented by the Small Business Administration (SBA). The loan is designed to help small businesses and private non-profit organizations that have suffered substantial economic injury as a direct result of a major declared disaster.

The EIDL program is intended to provide financial assistance that will help these businesses and organizations to recover from the injury and return to their normal level of operation.

The maximum loan amount that can be approved by the SBA is $2 million. The actual loan amount that a business or organization will receive will be determined based on their financial need and repayment ability.

To be eligible for an EIDL, a business or organization must:
-Be based in the United States or its territories
-Have suffered substantial economic injury as a direct result of a major declared disaster
-Be unable to obtain credit elsewhere
-Be small business concern or private non-profit organization as defined by the SBA

How is the Loan Amount Determined?

The amount of your EIDL loan is based on your actual economic injury and your business’s financial needs, regardless of whether the disaster was caused by Hurricane Florence, any other named storm or flooding.

To determine the amount of your loan, the SBA will consider:

-Your business’s financial needs
-Your past financial history
-Your credit history

The SBA offers EIDLs of up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred.

The EIDL Loan Process

EIDL loans are loans offered by the Small Business Administration to help businesses and individuals recover from declared disasters. Businesses can apply for an EIDL loan if they have suffered substantial economic injury as a result of the disaster.

What is the Application Process?

To apply for an EIDL, you will need to fill out a form on the SBA website. The form asks for general information about your business, including contact information, business structure, and the number of employees. You will also need to provide financial information about your business, such as revenue and expenses.

Once you have submitted the form, a representative from the SBA will contact you to discuss the loan process and determine how much money you are eligible for. The SBA will then send you a loan agreement that you will need to sign and return.

Once your loan agreement is received by the SBA, they will disburse the loan funds to your bank account. You can then use the funds for any business purpose, including paying employees, rent, or other bills.

How Long Does it Take to Receive the Loan?

According to the Small Business Administration, it may take up to 21 days to receive the loan.

EIDL Loan Terms and Conditions

The Eidl loan amount is based on your business’ financial needs and is not to exceed $2 million. The loan terms are up to 30 years and the interest rate will not exceed 4%. You will need to repay the loan even if your business is not doing well.

What are the Loan Terms and Conditions?

The EIDL loan terms and conditions are as follows:
-You must be a U.S. business with fewer than 500 employees
-You must have suffered substantial economic injury as a result of the pandemic
-You can borrow up to $2 million at a 3.75% interest rate (for for-profit businesses) or 2.75% (for non-profits)
-Repayment terms are up to 30 years
-There are no fees or collateral required

What are the Repayment Terms?

Your loan is fully amortizing with monthly payments due beginning 6 months after the date of disbursement. At the time you apply for an EIDL, you will need to elect a repayment schedule of either 7 years or 10 years.

If your loan is for physical damage:

-You may repay your loan over a maximum term of 30 years.
-You will have up to 6 months from the date of disbursement to begin making payments.

If your loan is for economic injury only:

-You may repay your loan over a maximum term of 10 years.
-You will have up to 12 months from the date that the SBA determines that you are unable to repay in full from your business’s current earnings before making payments on your EIDL.

How to Apply for an EIDL Loan

The EIDL loan amount is determined by your business’ economic injury and is based on your business’ revenue. To apply for an EIDL loan, you will need to fill out a loan application and provide some documentation about your business and its financials.

What is the Application Process?

The first step is to fill out the online application. You will need to provide some basic information about your business, including contact information, business location, and type of business. You will also be asked to provide financial information, such as your revenue and expenses.

After you submit your application, a loan officer will contact you to discuss your eligibility and the next steps in the process. If you are approved for a loan, you will be asked to provide additional documentation, such as tax returns or financial statements. Once all of the required documentation is received, a loan officer will determine the loan amount and terms.

How Long Does it Take to Receive the Loan?

According to the Small Business Administration (SBA), it can take up to 21 days to receive an EIDL loan from the time you apply. However, many borrowers report that it takes longer for the loan to be disbursed.

If you need the funds quickly, you may want to consider applying for an EIDL grant instead of a loan. With a grant, you can receive up to $10,000 within three days of applying. However, this money does not have to be repaid.