Frequently Asked Questions: COVID-19 Economic Injury Disaster Loan (EIDL) (SBA file date: 2021-02 02.04.21)
Summary
The Small Business Administration's Frequently Asked Questions on the COVID-19 Economic Injury Disaster Loan (EIDL), dated 2/4/2021, answer numbered questions on applying, reconsideration, payments and identity theft. The application deadline and covered period were extended until Dec. 31, 2021, and declined applicants have up to 6 months to request reconsideration. A COVID-19 EIDL provides six months of working capital up to a maximum of $150,000 at 3.75% APR (fixed) for businesses and 2.75% APR (fixed) for nonprofits, with up to 30 years to repay and the first payment deferred one year. Collateral is required for loans over $25,000 and a personal guarantee for loans exceeding $200,000. The Targeted EIDL Advance is a $10,000 grant for businesses in low-income communities with a revenue reduction of greater than 30% and 300 or fewer employees.
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
1. What do I need to submit with my application?
Simply complete your business or nonprofit’s information on the streamlined loan application at
sba.gov/CoronavirusRelief. SBA’s processing staff may request additional information.
2. I applied for a COVID-19 EIDL loan and I haven’t heard anything about my application. Should
I reapply?
No. Any additional applications will be marked “duplicate” and will not be processed. Please call
our Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing)
or email DisasterCustomerService@sba.gov to check the status of your application. If you have
already applied, you do not need to submit your information again.
3. I need help completing the application. Can the SBA help me?
You can contact SBA’s Customer Service Center at 1-800-659-2955. Also, SBA Resource Partners
such as a local Small Business Development Center (SBDC) or Women’s Business Development
Center (WBC) can assist you with completing and submitting the COVID EIDL application at no
cost. To find the SBA Resource Partner nearest you, visit sba.gov/LocalAssistance.
4. My loan is currently in the reconsideration process/I’ve requested more money; what will
happen after the deadline passes?
The application deadline and covered period have been extended until Dec. 31, 2021. Applications
in the reconsideration or re-sizing process prior to the deadline will continue to be processed.
5. Can I request reconsideration after the deadline?
Yes. An applicant has up to 6 months after the date the application was declined to request
reconsideration, even if the application deadline of Dec. 31, 2021 has passed.
Send reconsideration requests to:
E-mail: pdcrecons@sba.gov
Mail: U.S. Small Business Administration
Disaster Assistance Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, Texas 76155
Include your application number, any information required to overcome the reason for decline, and any
additional information that may assist us in processing your request.
The process and required documents may vary depending on the reason for the decline. If the
decline letter requested specific information or documentation for reconsideration, you must include
those items.
Be sure to include:
• Business Name
• Borrower’s Name
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
• Tax ID/EIN or SSN
• Application/Loan Number
• IRS Form 4506-T (form must be received within 120 days of the signature date)
6. What is the difference between EIDL and the Targeted EIDL Advance?
Economic Injury Disaster Loan (EIDL) EIDL Advance (closed) and
Targeted EIDL Advance (limited eligibility)
DESCRIPTION An EIDL is a long-term, direct loan from the The Targeted EIDL Advance is an emergency
SBA. grant that provides working capital to
businesses and nonprofits located in a low-
income community, that suffered a reduction in
revenue of greater than 30%, and have 300 or
fewer employees.
PURPOSE To meet financial obligations and For small business continuity, adaptation and
operating expenses that could have been resiliency. Also, for any allowable purpose of the
met had the disaster not occurred. EIDL loan.
AMOUNT Six months of working capital, up to a Original EIDL Advance provided $1,000 per
AVAILABLE maximum of $150,000. employee up to a maximum of $10,000;
Targeted EIDL Advance provides the full $10,000
to certain small businesses that meet eligibility
criteria. Cannot receive more than $10,000 for
original EIDL Advance and Targeted EIDL
Advance combined
TERMS 3.75% APR (fixed) for businesses Emergency capital; does not have to be
repaid and recipients do not have to qualify
for or accept a loan.
2.75% APR (fixed) for nonprofits
Up to 30 years to repay
COLLATERAL Required for loans over $25,000 N/A
PERSONAL Requires personal guarantee for loans N/A
GUARANTEE? exceeding $200,000
FORGIVABLE? No. Loan may be repaid at any time with no EIDL Advances are not loans; they are grants
pre-payment penalties. that do not require repayment.
1st PAYMENT 1st payment deferred one (1) year; you can N/A
make payments if you like. Interest accrues
during deferral period.
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
Complete and submit SBA Form 1201
Borrower Payments on Pay.gov.
APPLY Apply online Businesses can only apply when they receive a
direct email invitation from SBA. Applicants do
not need to take any action at this time.
SBA will reach out to those that may qualify.
7. Can I apply for the COVID-19 EIDL if I already received a PPP loan?
Yes. Borrowers can apply for both the PPP and EIDL, although funds from both cannot be used for
the same purpose.
8. What can I use COVID-19 EIDL funds for? And how is that different from PPP funds?
EIDL proceeds can be used to cover a wide array of working capital needs and normal operating
expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. For
information on PPP proceed use, please visit sba.gov/CoronavirusRelief.
9. Will the EIDL Advance or Targeted EIDL Advance be subtracted from my PPP loan forgiveness?
No. The Economic Aid Act, enacted in December 2020, repealed the requirement for the Advance
to be subtracted from the PPP loan forgiveness.
10. Who is eligible for COVID-19 EIDL?
Applicants must be physically located in the United States or designated territory and suffered
working capital losses due to the Coronavirus pandemic. Eligible applicants include:
• Businesses with 500 or fewer employees or defined as small per sba.gov/SizeStandards
• Cooperatives with 500 or fewer employees
• Agricultural enterprises with 500 or fewer employees
• Most private nonprofits
• Faith-based organizations
• Sole proprietorships and independent contractors
Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-level
sales distribution, gambling, investment or lending.
Note: The eligibility requirements for the Targeted EIDL Advance are slightly different than the COVID-19
EIDL program. Please visit sba.gov/CoronavirusRelief for details.
11. What if I am not a U.S. Citizen but my business meets all the other criteria for a COVID-19 EIDL?
A non-US citizen who owns 20 percent or more of the business is eligible if they are classified as a “non-
citizen national” or “qualified alien.” Qualified aliens include permanent residents with a current green
card. Refer to SOP 50 30 9, Appendix 7.
12. What is the process to receive an SBA COVID-19 EIDL loan?
There are four steps in the COVID-19 EIDL application process:
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
1. Apply at DisasterLoanAssistance.sba.gov.
2. Receive Loan Quote. This is an estimate of qualified loan amount; it does not mean the loan
is approved. Applicant needs to choose loan amount up to this maximum.
3. Application Review. A Loan Officer will review the application for completeness and may
contact the applicant if more information is needed.
4. Decision. A decision is made as to whether the application is approved or declined.
IF APPROVED:
• An email is sent to the applicant(s) to choose the loan amount and sign loan documents. Be sure to
download a copy for your records.
• Loan proceeds are transferred to your bank account within 5-10 business days.
• Retain receipts and contracts for all loan funds spent for three (3) years.
• Make payments through Pay.gov OR mail payments to:
U.S. Small Business Administration
P.O. Box 3918
Portland, OR 97208-3918
Payments should NOT be sent to SBA’s Servicing Center as this will result in a delay in
processing.
When mailing payments, include:
• Business Name
• Borrower’s Name
• Borrower’s Address
• Account Number
• Tax ID/EIN or SSN
• 10-digit SBA Loan Number
IF DECLINED:
• Decline letter sent via email.
• Applicant can request reconsideration in writing within six (6) months of the date of decline letter.
Send to:
E-mail: pdcrecons@sba.gov
Mail: U.S. Small Business Administration
Disaster Assistance Processing & Disbursement Center
14925 Kingsport Road
Fort Worth, Texas 76155
Include your application number, any information required to overcome the reason for decline, and any
additional information that may assist us in processing your request.
The process and required documents may vary depending on the reason for the decline. If the
decline letter requested specific information or documentation for reconsideration, you must include
those items.
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
13. How can I check the status of my loan application?
Applicants will receive an invitation to log in to the customer portal to review the application,
select an eligible loan amount, and submit for final review. If the loan is not approved, the
applicant will receive an email notification with a detailed reason for the loan decline, including
instructions on how to appeal the decision.
Contact customer service to check on status at 1-800-659-2955 (1-800-877-8339 for the deaf and
hard of hearing) or DisasterCustomerService@sba.gov.
14. I received an initial loan quote. Does that mean I’ve been approved?
No, that is simply an estimate of the loan you may be qualified to receive. Once you receive the initial
loan quote:
1. Log in to your SBA Loan Portal
2. Choose how much you want your loan amount to be, up to the maximum quoted
3. Be sure to click the submit button
Once that is completed, your application will be advanced to the final review stage. You may be
contacted by a Loan Officer to submit additional information. Please respond promptly so your
application can be processed promptly.
15. I received the loan; how do I make payments?
COVID-19 EIDL loan payments are deferred for 12 months, although interest will accrue. You may make
payments earlier or at any time. Set up online payments by completing SBA Form 1201 Borrower
Payments on Pay.gov. There is no penalty for early payments.
If you prefer to mail payments, send them to:
U.S. Small Business Administration
P.O. Box 3918
Portland, OR 97208-3918
Note: Payments should NOT be sent to SBA’s Servicing Center as this will result in a delay in
processing.
Make checks or money orders payable to SBA. Make sure to include your 10-digit SBA loan
number.
When mailing payments, include:
• Business Name
• Borrower’s Name
• Borrower’s Address
• Account Number
• Tax ID/EIN or SSN
• 10-digit SBA Loan Number
16. What if I don’t need as much money as I’ve been approved for?
Option A) If you received the initial loan quote only, you can select a lower amount
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
1. Log in to your SBA Loan Portal
2. You may lower the amount you want your loan to be, with the maximum being the loan amount
quoted
3. Be sure to click the submit button
Option B) If you already received funds via Direct Deposit, you can return the funds
Make check payable to SBA and send with note that indicates whether the funds should be
applied to the EIDL, Advance or both, and include:
• Business Name
• Borrower’s Name(s)
• Tax ID or SSN
• Loan Number
SBA’s Disaster Customer Service Center can also provide loan payoff information and can be reached
at 1-800-659-2955 (1-800-877-8339) or DisasterCustomerService@sba.gov.
Send to:
U.S. Small Business Administration
P.O. Box 3918
Portland, OR 97208-3918
17. I have a business partner, but he/she does not want to be included on the COVID-19 EIDL
application. Can I still apply?
All owners who own 20 percent or more of the business are required to be included on the
application and at least 81 percent ownership needs to be accounted for on the application in
order to be considered.
18. What if I didn’t accept the full amount I was approved for; can I get the full amount now?
If applicant accepted the loan for less than the full amount originally offered, they have up to two (2)
years after the date of the loan note to request to request an increase to get additional funds, even after
the application deadline of Dec. 31, 2021.
If an applicant declined the original loan offer, the loan offer is considered to be withdrawn.
Applicants can request a reacceptance within 6 months of the original offer, even after the
application deadline of Dec. 31, 2021.
In either case, send requests to:
E-mail: pdcrecons@sba.gov
Mail: U.S. Small Business Administration
Disaster Assistance Processing & Disbursement Center
14925 Kingsport Road
Fort Worth, Texas 76155
Include your application number additional information that may assist us in your request, including
updated financials.
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
Be sure to include:
• Business Name
• Borrower’s Name
• Tax ID/EIN or SSN
• Application/Loan Number
• IRS Form 4506-T (form must be received within 120 days from the signature date)
19. What if I need more money than I’ve been approved for?
COVID-19 EIDLs can be modified by increasing the amount up to 6 months of working capital or a
maximum of $150,000, whichever is less. An increase can be requested either before or after accepting
the loan. If applicant is in urgent need of funds, accept the maximum loan amount offered and then
request an increase by providing additional documentation.
If you were approved for a loan and would like to request additional funds, send an email that states your
need for an increase to the loan amount to pdcrecons@sba.gov with the word “INCREASE” in the
subject line. Include any additional information that may assist us in considering an increase for your
application. For example:
1. Your most recent Federal tax return for your business along with a signed IRS Form 4506-T
2. For updated financials (Gross Revenue, Cost of Goods Sold, cost of operation, or other sources of
compensation), submit Form 3502.
20. I have multiple businesses. Can I submit multiple COVID-19 EIDL applications?
Yes, you can submit one application per eligible business. However, at least 81 percent ownership for
each business needs to be accounted for on the application.
21. I’ve been declined for COVID-19 EIDL. What could be the reasons for that decline?
Decline reasons are unique to the applicant. The most common reasons for a decline are:
• Unsatisfactory credit history. Because EIDL is a government loan, federal regulations require
applicants to meet minimum credit standards to qualify.
• Unverifiable information. If an applicant does not respond within 7 days to requests for additional
information from loan officers, their application may be declined. Request a reconsideration to
reactivate your application.
• Ineligible non-US citizen status. Applicants must be US citizens, non-citizen nationals, or qualified
aliens. Refer to SOP 50 30 9, Appendix 7 for further information.
• Business activity not eligible.
• Economic injury not substantiated. There are two possible reasons for this decline: 1) The
economic injury is less than the amount received for the EIDL Advance; or 2) The information
submitted does not indicate an economic injury.
• Character reasons. Applicants may be declined if they have been convicted of a felony in the past
five years; or ever been engaged in the production or distribution of any product or service that has
been determined to be obscene by a court of competent jurisdiction; those who are currently
suspended or debarred from contracting with the federal government or receiving federal grants or
loans; and/or those who are presently subject to an indictment, criminal information, arraignment,
or other means by which formal criminal charges are brought in any jurisdiction.
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
• Failure to respond. If applicants do not respond to emails asking for additional information or to
sign loan closing documents, the application will typically expire after 60 days.
22. Can I request a reconsideration if my COVID-19 EIDL application is declined?
Applicant has up to 6 months to request reconsideration, even after the application deadline of 12/31/21.
Send reconsideration requests to:
E-mail: pdcrecons@sba.gov
Mail: U.S. Small Business Administration
Disaster Assistance Processing & Disbursement Center
14925 Kingsport Road
Fort Worth, Texas 76155
Include your application number, any information required to overcome the reason for decline, and any
additional information that may assist us in processing your request.
If the decline letter requested specific information or documentation for reconsideration, you must
include those items.
Be sure to include:
• Business Name
• Borrower’s Name
• Tax ID/EIN or SSN
• Application/Loan Number
• IRS Form 4506-T (form must be received within 120 days of the signature date)
The process will vary depending on reason for decline.
Example:
Applicant receives a decline letter for their COVID-19 EIDL application from the SBA, listing
“Economic injury not substantiated” as the reason for the decline. This reason is common when an
applicant’s self-certified financial information on their streamlined application, such as the figures
for Gross Revenues and the Cost of Goods Sold for the 12 month period prior to the pandemic, did
not reflect an economic injury, or the information may have been left blank.
The business owner’s request for reconsideration should be a written email/letter request
including the following:
• A written note from the applicant requesting reconsideration of their declined COVID-19 EIDL
application, which includes the Application number, Business/Entity name, Owners name(s),
and address of business
• Copy of the most recent federal tax returns filed for the business, prior to the COVID-19
Pandemic, including all schedules and attachments
• A completed and signed IRS Form 4506-T for the business entity
• Copy of a voided check for the business account
• Upon SBA’s processing of the reconsideration, the SBA may request additional information,
which may include SBA Form 3502 – EIDL Supporting Information
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
23. If I’ve already received a COVID-19 EIDL and I’ve been affected by another disaster, such as a
flooding or wildfire event, can I ask for more funds?
If you are in an area that has a Disaster Declaration, which includes disasters such as flooding,
storm damage, wildfires or earthquakes, you may be eligible for additional SBA Disaster Loans to
cover damage to your home, personal possessions and/or business.
Check DisasterLoanAssistance.sba.gov to see if there is a disaster declaration for your area.
SBA’s COVID-19 relief programs, such as the PPP and EIDL, are for economic impacts resulting
from the coronavirus pandemic, and not for physical or economic disaster losses caused by other
disasters.
24. I already have received COVID-19 EIDL loan funds and my business has not recovered yet from
the impacts of the COVID shutdowns; would I qualify for more federal assistance?
If you received less than $150,000 in COVID-19 EIDL loan funds, you may request an increase in your
existing SBA EIDL loan. You may also qualify for other coronavirus relief options from SBA as part of the
Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act [Economic Aid Act, enacted on
Dec. 27, 2020, which includes the opening of First and Second Draw Paycheck Protection Program (PPP)
loans]. See updates and information at sba.gov/CoronavirusRelief.
25. If I get another Disaster Loan due to different disaster event, can I consolidate the new loan
with my COVID-19 EIDL? Or can I use it to pay off the COVID-19 EIDL?
No. Each SBA Disaster Loan is a separate loan; they cannot be consolidated or used to pay off earlier
loans.
If you qualify for another SBA disaster loan due to a different declared disaster in your area, the new loan
must be used for the purposes listed in your loan closing documents, which may include working capital
or physical damage repairs. The terms and conditions of other disaster loans may be different than those
of the COVID EIDL, and the new loan cannot be used to refinance or payoff existing SBA disaster loans
from previous disaster events, including COVID-19. Retain receipts and contracts for all loan funds spent
for three (3) years so you will be able to document use of funds for each loan.
26. Given that my business has not yet recovered from COVID shutdowns, how will I handle
repayment?
Payments for COVID-19 loans are deferred automatically for one (1) year. Disaster loans already in
repayment status for disasters that occurred before COVID-19 are deferred through March 31, 2021. New
disaster loans for other disasters are also automatically deferred for one (1) year.
If you qualify for a new disaster loan, you can request that the SBA extend the deferment of your other
loan payments to help with the financial hardship by contacting our Customer Service Center at 1-800-
659-2955 (1-800-877-8339) or DisasterCustomerService@sba.gov.
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
27. How is the process for applying for a natural disaster loan different from the COVID-19 EIDL
process?
If your only experience with SBA Disaster Loans has been with the EIDL program for COVID-19, you’ll find
the process different for declared disasters such as natural disasters.
There are two assistance programs:
• Physical damage loans that cover repairs and replacement of physical assets
damaged in a declared disaster that are not covered by insurance.
• Economic injury loans to cover small business operating expenses after a declared
disaster.
The application portal is different. Apply at DisasterLoanAssistance.sba.gov or visit
SBA.gov/Disaster for more information.
28. How does SBA define Gross Revenue/Receipts?
Gross receipts include all revenue in whatever form received or accrued (in accordance with
the entity’s accounting method) from whatever source, including from the sales of products
or services, interest, dividends, rents, royalties, fees or commissions, reduced by returns and
allowances for the applicant business.
29. How does SBA define Cost of Goods Sold?
Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company.
This amount includes the cost of the materials and labor directly used to create the good. It
excludes indirect expense, such as distribution costs and sales force costs. Visit Small Businesses
Self-Employed | Internal Revenue Service (irs.gov) for additional details pertaining to COGS.
30. What if somebody stole my identity to apply for and obtain EIDL assistance in my name?
If you suspect that somebody used your personal information without your knowledge or
permission to obtain EIDL assistance, please download the Identity Theft Letter for step-by-step
instructions on how to report the identity theft case to SBA. The letter also includes recommended
next steps you should take to protect yourself from further financial harm as a result of identity
theft, such as reporting the identity theft to the Federal Trade Commission (FTC) at
IdentityTheft.gov as well as adding a fraud alert or credit freeze to your credit reports.
31. Will SBA remove the hard inquiry from my credit report as a result of identity theft?
Yes. You can dispute a hard inquiry and request that it be removed as a result of identity theft by
contacting Experian directly at at 1-800-888-397-3742 or online at Experian Disputes.
32. Why am I still receiving monthly statements after I reported the identity theft to SBA?
You may continue to receive monthly statements while SBA is working to review your identity
theft documents and to address the open loan debt. The statements do not reflect the status of
the ongoing review of the identity theft. SBA will send you a separate written confirmation when
the identity theft review is completed, and the loan debt has been resolved.
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Frequently Asked Questions
COVID-19 Economic Injury Disaster Loan (EIDL)
33. Disaster Assistance at a Glance
Types of Assistance Borrowers Purpose Max. Amount
Business Disaster Loans Businesses of all sizes Repair or replace real $2 million
(Physical losses) and private nonprofit estate, inventory,
organizations equipment, etc.
Economic Injury Loan Small businesses, Working capital 6 months of working
(COVID-19 EIDL) agricultural concerns, (operating expenses for capital (operating
some private nonprofits agricultural concerns expenses for agricultural
and nonprofits) concerns and nonprofits),
up to a max of $150,000
Economic Injury Loans Small businesses and Working capital $2 million
(All other disasters) private nonprofits
Military Reservist Small businesses with Working capital $2 million
Economic Injury military reservist(s)
Disaster Loan (MREIDL) called up to active duty
Home Loans—real Homeowners Repair or replace $200,000
estate primary residence;
damage not covered by
insurance
Home Loans—personal Homeowners and Repair or replace $40,000
property renters personal property not
covered by insurance
Mitigation Businesses, private Mitigate / prevent future Increase of up to 20% of
nonprofits, and loss of the same type verified physical
homeowners damage. Homeowners
limited to $200,000.
We encourage following the SBA on Twitter, subscribing to SBA’s e-newsletter, and visiting us frequently
online at sba.gov/CoronavirusRelief to stay up to date on developments.
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