How to Apply for a COVID-19 Economic Injury Disaster Loan (EIDL)

Economic Injury Disaster Loan

The emergence of the Economic Injury Disaster Loan (EIDL) is premised on the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The Act empowered Small Business Administration (SBA) through EIDL to grant financial relief packages to small-business owners and nonprofits organizations as well as charitable organizations such as churches and private universities who were hampered by the adverse effect of the Coronavirus Pandemic.

The EIDL program which was planned to end Dec. 31, 2020, has been extended through Dec. 31, 2021, with the passage of the Consolidated Appropriations Act (CAA), 2021.

This Act is targeted at the previous EIDL applicants who are in low-income areas earmarked by SBA. In addition, the American Rescue Plan of 2021 has made an additional $15 billion funding for special targeted EIDL Advance grants that exclude taxable income.

What is Economic Injury Disaster Loans?

The Small Business Administration’s (SBA) disaster loans are the primary form of Federal assistance for the repair and rebuilding of non-farm, private sector disaster losses. The disaster loan program is the only form of SBA assistance not limited to small businesses.

Key Takeaways

  • It is obvious that the first phase of EIDL Advance program has expired, but is been extended to Dec. 31, 2021.
  • New EIDL Targeted Advance is only available to selected applicants in low-income communities.
  • You can be informed by SBA in case you qualify for a new EIDL Targeted Advance.
  • The number of employees required to qualify you for a COVID-19 EIDL as a small business owner.
  • As at April 6, 2021, the highest loan amount is $500,000 and it is determined by the adverse effect recorded.
  • Some loans approved prior to April 6 will be eligible for an increase, and borrowers will be contacted by the SBA.
  • Changes have been made to the normal EIDL application and it can take about two hours.


If you suffered working capital losses as a result of a coronavirus pandemic and your business meets the requirement set by SBA and size standards of a small business whose operation is within the United States or a US territory. Certainly, you have qualified for the EIDL loan.

You may also like: PPP Loan: Guide On How Does PPP Loan Work

Loan Approval Conditions

Below are the loan approval conditions as stated by the EIDL stipulations:

  • You are entitled to borrow up to $200,000 without a personal guarantee.
  • Your credit score is a determinant for your loan approval and you don’t need first-year tax returns.
  • You do not have to prove you could not get credit elsewhere.
  • While SBA are on hand to review your business tax records, note that loans of $25,000 or less are collateral free while above $25,000, a general security interest in business assets can be used.

Streamlined Application

The application is simplified making the process stress-free while applying. Your application can be submitted through SBA as the body that financed EIDLs loans. The coronavirus type of the EIDL loan takes at most two (2) hours or less to complete.


For clarity purposes, you are brief about the loan and the conditions that are attached to determine your application eligibility.

Items well-spelled out includes a warning that if you do not provide all of the information requested, your loan will not be processed, as well as a reminder that the SBA is relying on your self-certification of eligibility to receive the advance (if you apply) and that there is a penalty if the information you provide turned to be untrue.

You can go ahead with the Business Information column after your eligibility on the disclosure page is verified.

 Business Information

This section is designed to accommodate some basic information that relates to your business. First, you are required to provide your income statement from January 31, 2020. Fields marked with a red star are mandatory to fill out while others can only be filled if applicable to your business.

Business Owners Information

You are required to provide information about your business whether it is co-owned by another business or individuals. If owned by individuals, you need to provide information on each owner who has a 20% stake in the business or more. Information requested will include:

  • Home address
  • Phone number
  • Social Security number
  • Date and place of birth
  • Citizenship status
How to Apply for a COVID-19 Economic Injury Disaster Loan (EIDL). Learn with Great Finance Ideas

 Additional Information

Indicate whether or not a member of your organization was in any way indicted after here, proceeds to apply.

You can also apply online.

-Applying online is one of the fastest ways. Apply online at

At this point, your application might have been received by SBA and can be found on the SBA Disaster Loan Assistance webpage. The SBA has extended the application deadline to Dec. 31, 2021.

Check out also: FHA Loan Ultimate Review: All You Need to Know

An EIDL Loan can be Refinanced into a PPP Loan.

You Can Apply for a PPP Loan as well apart from EIDL

Going by the SBA guidelines as defined, you can as well apply and enjoy a PPP loan in addition to an EIDL.

The possibility of this is that hence the said loans are not used for the same purpose/expenses. For example, if your approved loan from PPP is used for payroll, you cannot use funds from an EIDL for payroll again.

 When to Expect Your Funds

It takes a minimum of 21-days for the disbursement process to complete going by SBA protocols. This time frame is due to some background checks, in case some questions are required or additional information is needed.

 The Application Process in Order

  • Apply at
  • Receive loan quote. (This does not mean you are approved.)
  • Choose your loan amount up to the loan quote maximum.
  • A loan officer will review your application and ask for more information if needed.
  • A decision will be made and you will either be approved or your application declined.

If approved:

  • You will receive an approval email from and asked to choose your loan amount and sign documents.
  • Your loan funds will be transferred to your bank within 5-10 business days.

If declined:

  • You will receive a decline email from
  • You can request reconsideration in writing within six months from the date you are notified.

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