The U.S. Small Business Administration (SBA) has approved Wisconsin’s request for small businesses affected by the COVID-19 pandemic to access low-interest federal disaster loans. Under the Economic Injury Disaster Loan (EIDL) program, businesses may qualify for up to $2 million in loans to cover losses resulting from the pandemic. SBA’s EIDL are available to small businesses, small agricultural cooperatives, small agricultural businesses and most private non-profit organizations. The interest rate on the loans is 3.75% for for-profit businesses and 2.75% for nonprofits. Participants may be able to extend payments for up to 30 years. The SBA is currently offering a deferment of payments for 12 months,
The EIDL Program provides working capital loans for:
- Fixed Debts
- Payroll
- Accounts Payable
- Other bills that could have been paid had the disaster not occurred.
The loans are not intended to replace lost sales or profit or for expansion. The SBA primarily looks at the credit history and the ability to repay the loan as criteria for loan approval. Loans under $25,000 do no require any collateral.
The EIDL offers very little risk to businesses. There is no application fee to apply to the EIDL program. Also if you are awarded a loan you are under no obligation to accept the loan if you have found financing elsewhere. If your business needs funds to offset working capital costs you should apply to the program ASAP, you can amend the amount of funds requested if your needs since the time of the application submission.
Please CLICK HERE to access the application portal.
If you have more questions, please view this FAQ page on the EIDL program.
The Wisconsin Small Business Development Network (SBDC),a resource partner of the SBA, is available to help small businesses apply for federal disaster loans to mitigate the substantial economic injury as a result of the COVID-19 pandemic. Please visit the Wisconsin SBDC website designed to help business owners understand the qualifications and application process. Consultants across the network’s 13 locations are working remotely via phone, email and virtual tools to assist clients.
For more information on programs offered through WEDC please CLICK HERE.