The Economic Injury Disaster Loan is now available to all businesses after the U.S. Small Business Administration limited which businesses could apply in May. Due to high demand, the SBA’s EIDL portal had been accepting applications only from agricultural businesses for the last month - those businesses had not been eligible in the past. All eligible businesses are now able to apply for EIDL and the $10,000 cash advance including small businesses, private nonprofits, sole proprietors, 1099 workers, ESOPs, tribal entities and more, the SBA announced Tuesday. Historically, the EIDL program has provided businesses with less than 500 employees a loan of up to $2 million. The loan carries an interest rate of 3.75% for small businesses and 2.75% for non-profits and a term of up to 30 years. However, other news outlets have reported that EIDL's cap dropped from $2 million to $150,000 in early May. Wisconsin SBA's public information officer Shirah Apple was unable to comment on the change.
EIDL funds can be used and may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and are not already covered by a Paycheck Protection Program loan.
The EIDL program also offers eligible businesses a $10,000 cash advance grant. Recipients do not have to be approved for a loan in order to receive the advance, but the amount of the loan advance will be deducted from total loan eligibility. Unlike the Paycheck Protection program, which is available for businesses to apply through June 30, businesses can apply to the EIDL programs through end of year. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. As of June 12, Wisconsin has approved 15,328 Economic Injury Disaster Loans for a total of $961,068,700. A total of 1,332,955 Economic Injury Disaster Loans have been approved across the country for more than $90 billion, according to the U.S. SBA.