The EIDL is a low-interest federal loan issued by the SBA to alleviate economic injury small businesses or private nonprofits are experiencing injury and, in this case, injury caused by the Coronavirus (COVID19).  The interest rate is 3.75% for small businesses and the interest rate for nonprofits is 2.75%.  The loan term is 30 years and there is no prepayment penalty.

These loans can be used to pay for ‘working capital’ of a business.  Working capital loans are generally used to pay day-to-day expenses of the business. These might include salaries, inventory, rent, utilities, and short-term debt or long-term debt payments, for example. The State of Illinois will also be holding several webinars with further information about EIDL.  These sessions are online and are on the following dates and times:

  1. Tuesday November 30 – 9:00am to 10:00am Register

  2. Wednesday December 1 – 1:00pm to 2:00pm Register

  3. Thursday December 2 – 1:00pm to 2:00pm Register

Note: These webinars contain the same information. Register for the date / time that works best for you.

During this 1 hour webinar, offered on three different dates, you will learn about:

  •  New enhancements to the SBA COVID EIDL program

  • Where and how to apply for a SBA COVID EIDL Advance and loan and about other SBA programs that can help your business recover from the pandemic.

  • Eligibility to receive up to $15,000 in Advance funding from the SBA that does not need to be repaid (Targeted EIDL Advance and Supplemental Targeted Advances

  • Advances” are similar to a grant, but without the typical requirements that come with a U.S. government grant.

  • To receive an advance, you must first apply for a COVID-19 EIDL. You do not need to accept the loan or be approved for the loan to receive an advance. Once you apply for the loan, SBA will invite you via email to apply for one of the advance programs if your business is located in a low-income area.

  • The maximum loan amount for borrowers has increased from $500,000 to now up to $2 million.

  • Loan pay back is now deferred for 24 months.

  • The eligible uses for these loan funds has been expanded.

  • Historically low interest rates

Particularly if you have accrued debt during the pandemic to keep your business open, the EIDL may be a good fit for you.  And the JCBA can help you to apply for an EIDL as part of our work as a community navigator.  If you’d like more information, you can visit www.sba.gov or call the JCBA at 618-639-5222.