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  • Writer's pictureDavid Laurence

Economic Injury Disaster Loans

By now most small business owners know that the CARES Act, through the Small Business Administration (SBA), offers financial relief through two targeted loan packages—the new Paycheck Protection Program (PPP) and the existing Economic Injury Disaster Loans (EIDL) program.

To view all federal funding options, click here.

In this article we will be looking at the EDIL program. If you want to learn more about the PPP check out this guide we have written for you.

The EIDL program provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 “within three days of applying for the loan.” There is evidence to suggest that due to an overload of applications, the advance will take a number of weeks to be issued. To access the advance, you must first apply for an EIDL and then request the advance. The advance does not need to be repaid, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. Key point, the $10,000 advance is forgivable, and does not need to be paid back, but the rest of the loan must be paid back. This is a key difference between the EDIL and the PPP. The maximum loan is $2 million, but the exact loan amount will be calculated by an estimation of economic injury suffered by the applicant.

Question: Who is eligible for an EIDL? Answer: Those eligible are the following with 500 or fewer employees:

  1. Small business concerns (including sole proprietorships, with or without employees)

  2. Independent contractors

  3. Cooperatives and employee-owned businesses

  4. Private non-profits

  5. Tribal small businesses

Question:My private non-profit is not a 501(c)(3). Is it still eligible for an EIDL and a grant? Yes, if you are a private non-profit with an effective ruling letter from the IRS, granting tax exemption under sections 501(c), (d), or (e) of the Internal Revenue Code of 1954, or if you can provide satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law.

Question: If I get an EIDL and/or an Emergency Economic Injury Grant, can I get a PPP loan? Answer: Whether you’ve already received an EIDL unrelated to COVID-19 or you receive a COVID-19 related EIDL and/or Emergency Grant between January 31, 2020 and June 30, 2020, you may also apply for a PPP loan. If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance amount received under the Emergency Economic Injury Grant Program would be subtracted from the amount forgiven in the PPP.

Question: How do I know if my business is a small business? Answer: Visit to find out if your business meets SBA’s small business size standards. You will need the 6-digit North American Industry Classification Code for your business and your business’ 3-year average annual revenue.

Question: How do I apply for an economic injury disaster loan? Answer: To apply for an EIDL online, please visit Your SBA District Office is an important resource when applying for SBA assistance. SBA resource partners are available to help guide you through the EIDL application process. You can find the nearest Small Business Development Center (SBDC), Women’s Business Center, or SCORE mentorship chapter at

I hope this information is helpful to you. If you have any questions, concerns, or needs, please do not hesitate to message me on Facebook, email me, or call my office with whatever is on your mind.

My office number is 919-733-5931 My office email is

Psalm 31:24 Be strong, and let your heart take courage, all you who wait for the Lord!

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