Economic Injury Disaster Loan

SBA’s Economic Injury Disaster Loans (or working capital loans) are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations

Included in the Economic Injury Disaster Loan

  • Businesses directly affected by the disaster
  • Businesses that offer services directly related to the businesses in the declaration
  • Other businesses indirectly related the industry that are likely to be harmed by losses in their community
  • (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product.

What is the criteria for a loan approval?

• Credit History: Applicants must have a credit history acceptable to SBA.
• Repayment: SBA must determine that the applicant business has the ability to repay the SBA loan.
• Eligibility: The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy.

How much can I borrow?

• Eligible entities may qualify for loans up to $2 million.

• The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years.

• Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.

How can I use the loan funds?

• These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion.

What are the collateral requirements?

• Economic Injury Disaster Loans over $25,000 require collateral.

• SBA takes real estate as collateral when it is available.

• SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available.