EIDL Program - Repayable Loan
Economic Injury Disaster Loan (EIDL) - Maximum Loan Amount Now $500,000
Purpose: To meet financial obligations and operating expenses that could have been met had the disaster not occurred.
Terms
- 3.75% for businesses (fixed)
- 2.75% for nonprofits (fixed)
- 30 years
- No pre-payment penalty or fees
Use of Proceeds: Working capital and normal operating expenses. Example: Continuation of health care benefits, rent, utilities, fixed debt payments.
Collateral Requirements
- Required for loans over $25,000
- SBA uses a general security agreement (UCC) designating business assets as collateral, e.g. machinery and equipment, furniture and fixtures, etc.
Forgivable: No
Maturity: 30 years
Payments: Deferred 1 year; interest still accrues. Borrowers may make payments earlier if they choose to do so.
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