Confusion seems to exist about COVID-related loans for small businesses. Some people say the program closed in August. THAT was the much-abused Trump administration Paycheck Protection Program (PPP) from the Small Business Administration. But there is another SBA Coronavirus relief effort known as the Economic Injury Disaster Loan Program (EIDLP). And THAT is still handing out funding.
The major difference is that the PPP offered forgivable loans to SMB and the EIDLP provides low-interest loans to SMB.
Do you represent a small business, nonprofit organization of any size, or a U.S. agricultural business (any with 500 or fewer employees) that has suffered substantial economic injury as a result of the Coronavirus pandemic? Then you can still apply for the COVID-19 Economic Injury Disaster Loan Program.
- Substantial economic injury means the business is unable to meet its obligations and pay its ordinary and necessary operating expenses.
- EIDLP provides the necessary working capital to help small businesses impacted by a disaster survive until normal operations resume.
- EIDLP assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
Check out the SBA loan site for more info.