The CARES Act expands access to SBA’s economic injury disaster loans (EIDL) program to businesses with fewer than 500 employees.
Eligible businesses that suffer substantial economic injury as a result of a disaster or emergency, which now includes COVID-19, can apply for a loan under this program between January 31, 2020, and December 31, 2020.
No personal guarantee is required for EIDLs under $200,000, and the loan can be made solely upon the applicant’s credit score.
Initial advances of up to $10,000 can be issued within three days and need not be repaid.
The loan will bear a low rate of interest; however, unlike PPP 7 loans, the act does not provide for forgiveness for EIDLs.
Businesses may receive both PPP loans and EIDLs, so long as both loans are not used for the same purpose or otherwise duplicative.