SBA Economic Injury Disaster Loan is now based on a two step application process.
Phase 1 (Grant Application)
- Most small businesses can apply with SBA for a grant of up to $10,000, which is supposed to be directly deposited to the bank account in 3 business days.
- However, due to the massive amount of demand (950,000 applications and counting, as of 3/31/2020), SBA staff is saying it might take 7-10 business days.
- This grant will most likely be counted towards the Payroll Protection Program (PPP) and will reduce the amount available under PPP (please see below). Basically, SBA is trying to prevent “double dipping” on funds received from the government.
- However, the grant is much faster to obtain vs. PPP since the latter is not live yet. Also, whether you receive the grant through EIDL or PPP, it serves the same purpose of covering payroll.
- Once SBA releases the up to $10,000 grant, SBA will contact you for further information and to proceed to Phase 2 of the EIDL process.
Phase 2 (Disaster Loan Application)
- Here is where SBA will request for additional documentation in order to qualify for the full EIDL, such as:
- Signed EIDL Application (Form 5)
- Personal Financial Statement (Form 159D)
- Schedule of Liabilities (Form 2202)
- Request for Tax Return Transcript (Form 4506-T)
- EIDL Supporting Information (P-019)
- This process is normally 1-2 weeks but SBA now says it might take up to 3-4 weeks.
- There is a small chance that SBA may streamline this process but it is unclear at the moment.
- This loan, if approved, allows for the following terms:
- Length of the loan can be up to 30 years
- APR will be 3.75% for small businesses
- Amount allowed will be up to $2 million
provided by INC.