EIDL—Economic Injury Disaster Loan is a $10,000 grant that is given to eligible businesses. Although it’s a “loan”, it’s more of a grant that doesn’t need to be repaid.
This was first introduced with the CARES Act (Coronavirus Aid, Relief, and Economic Security Act). As part of this program, all applicants can receive up to $10,000 in grants. The Small Business Administration allows $1,000 per employee up to 10 employees. So, if you have more than 10 employees working for you, the maximum amount you can receive is $10,000.
Note: If you’re a sole proprietor, you are only eligible for $1,000.
EIDL Grant Eligibility
To be eligible for EIDL Grant, you must have less than 500 employees. When applying for the grant, you must select the type of business you have. This can be any of the following.
- You are a business with less than 500 employees.
- You are an agricultural employer with less than 500 employees.
- You are an individual operating as a sole proprietor with or without employees or as an independent contractor.
- You are a cooperative with less than 500 employees.
The bottom line is you are considered as a small business. As long as you are classified as a small business under the Small Business Administration, you are eligible for the EIDL grant.
Applying for EIDL Grant Online
You can apply for EIDL Grant online through the Small Business Administration’s website. The application takes about ten minutes for most business owners. In order, you will need to complete the following parts of EIDL Grant Application Form.
- Disclosures (eligibility)
- Business Information
- Business Owner’s Information
- Additional Information
As for what you’ll need to apply for EIDL Grant, you will need income statements from February 2019 to January 2020. If you don’t have the income statements, check with a CPA.
After you complete all the parts, you should get your grant in about five business days. This comes with no certainty though. You may not get your grant for up to weeks. This is largely due to how long the SBA takes to process applications.
How long it takes to get EIDL Grant?
On average, we see that it takes about 3 to 10 business days for the SBA to process each application. When you submit your EIDL Grant application determines when you will hear from the SBA. If there are many applications prior to yours, it may take up to 10 business days.
Am I required to pay back the grant?
The short answer to this is no. Under the federal law, this is a grant. Some might think that you have to pay since the SBA refers to this as an advance. The reason why the SBA referred to this as a “loan” is that it will eventually be subtracted from the total loan amount you are issued.
My EIDL got rejected, do I need to pay the grant back?
Again, the short answer to this question is no. You aren’t required to pay the grant back even if your EIDL is rejected. If you decide to decline the EIDL funding, you aren’t required to pay it also. However, your EIDL will expire upon not signing the loan agreement in 60 days.
Will I get EIDL Grant if I apply?
Yes, why not? The EIDL grant is given to pretty much anyone that applies. As long as you are considered as a small business, you can get up to $10,000 if you have 10 or more employees working for you. Think of this program as stimulus payments solely for small businesses.