The Small Business Administration’s Economic Injury Disaster Loan (EIDL) can help businesses, renters, and homeowners affected by declared disasters. On March 27, 2020, the president signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. The CARES Act expands the EIDL program to meet the financial needs of struggling small business owners impacted by the coronavirus.
Under the EIDL provisions of the CARES Act, small businesses and other eligible applicants can apply for working capital loans of up to $2 million. Borrowers can use funds to pay fixed debts, cover payroll, and pay other bills they cannot otherwise pay due to the economic impact of the coronavirus.
Business owners can also apply for an EIDL emergency advance of up to $10,000. These funds will be made available within days of application and will not need to be repaid, even if the business’s application for an EIDL loan is denied.