What is the Emergency Economic Injury Disaster Loans (EIDL) and How Do I apply?

What is the Emergency Economic Injury Disaster Loans (EIDL) and How Do I apply?

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Posted by EJ Brown

March 30, 2020

Get a summarized one-pager of the Emergency Economic Injury Disaster Loans (EIDL):

The Small Business Administration (SBA) administers

Emergency Economic Injury Disaster Loans (EIDL)

which provides small businesses with loans of up to $2 million that can help them overcome the temporary loss of revenue in response to the Coronavirus.

The stimulus Act waives a lot of the requirements that have prevented many businesses from getting approval on EIDL loans.

Most importantly, even if you are not approved for these modified EIDL loans, you can still get up to $10,000 in emergency funds in as little as 3 days after you apply for the EIDL loan.  If you use this money for the basic operations of your business (rent, salary, materials) these funds will NOT have to be paid back under any circumstances.

We’ll walk you through what you need to know about the loans, how to apply, and frequently asked questions from home service companies.

Important Changes to EIDLS Via the Stimulus Bill

The Coronavirus Aid, Relief, and Economic Security (CARES) Act

expands eligibility for borrowers applying for an Emergency Economic Injury Disaster Loan (EIDL) loan. 

Under the Act, EIDLs are available for businesses or cooperatives with fewer than 500 employees, sole proprietors or independent contractors, or Employee Stock Ownership Plans (ESOPs) with fewer than 500 employees. 

Additionally, the Act waives the requirements that (1) the borrower provide a personal guarantee for loans up to $200,000, (2) that the eligible business be in operation for one year prior to the disaster, and (3) that the borrower be unable to obtain credit elsewhere. 

The SBA is also empowered to approve applicants for small-dollar loans solely on the basis of their credit score or "alternative appropriate methods to determine an applicant's ability to repay." 

Most significantly for borrowers seeking an immediate influx of funds, borrowers may receive a $10,000 emergency advance within three days after applying for an EIDL grant. If the application is denied, the applicant is not required to repay the $10,000 advance. 

Emergency advance funds can be used for payroll costs, increased material costs, rent or mortgage payments, or for repaying obligations that cannot be met due to revenue losses. 

Borrowers may apply for an EIDL grant in addition to a loan under the

Paycheck Protection Program

, provided the loans are not used for the same purpose.

Who Is Eligible

Businesses with fewer than 500 employees, including sole proprietorships.

Small Business Example

My business has been really impacted by the coronavirus and I am seeing a slowing of revenue. I can now apply for a loan from the SBA. Typically I would not have qualified, but this new act gives me a much better chance to get funded for a loan that will help me continue my operations during this time.  

At the very least, I can get a quick advance on this potential loan (and I won't have to repay it even if I am not approved for the loan!) of up to $10k to keep my business running - rent, payroll, materials, and anything else it's needed for.

How to Apply

All forms requiring a signature must be signed and dated. Incomplete applications will not be accepted.

Can submit online on the website above or mail here:

U.S. Small Business Administration

Processing and Disbursement Center

14925 Kingsport Rd.

Ft. Worth, TX 76155-2243

If you have any questions, contact them at 1-800-659-2955 or (TTY) (800) 877-8339


If I get the $10k, what do I have to use it for?


The funds can be used for payroll costs, increased material costs, rent or mortgage payments, or other obligations that cannot be met due to revenue losses.

What happens if I don't spend all of the $10k? Do I have to repay it? 

The full amount of the $10k advance should be used, but as long as it is used for payroll, rent, mortgage payments and other essential business needs, you should not have to repay it. 

Online Resources

Get a summarized one-pager of the Emergency Economic Injury Disaster Loans (EIDL):

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