SBA-EIDL

The SBA Economic Injury Disaster (Working Capital) Loan Program for COVID 19 (EIDL) is different from other SBA loan programs.  

ELIGIBLE AND NON-ELIGIBLE ENTERPRISES

  • Small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations (i) directly affected by the disaster; (ii) offer services directly related to the businesses int he declaration; or, (iii) businesses indirectly related to the industry that are likely to be harmed by losses in the community (Example: Widget manufacturer may be eligible as well as the wholesaler and retailer of the product) are eligible.

    • Eligible Industries (not an exclusive list): Restaurants, retailers, manufacturers, sports vendors, owners of rental property, souvenir shops, travel agencies, hotels, recreational facilities, charter boats, wholesalers, etc.

    • Eligible Non-Profits (not an exclusive list): Nursing homes, food kitchens, museums, educational facilities, senior citizen centers, daycare centers, playhouses, community centers, shelters, rescue organizations, associations, etc.

    • Ineligible Enterprises - (i) If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance; (ii) Religious or Charitable Organizations and government-owned concerns; (iii) Businesses considered hobbies; (iv) Gambling Concerns (more than 1/3 of annual gross revenue from legal gambling activities; and, (v) Speculative real estate businesses.

 

SBA EIDL BASICS
 

  • Loans are granted up to $2 million at 3.75% annual interest (2.75% for non-profit organizations) with terms up to 30 years. 

  • Maximum unsecured loan is $25,000. SBA will not decline a loan for lack of collateral but SBA will require a pledge of available, such as real estate, when it is available. 

  • Loan proceeds can be used to pay: (i) fixed debts; (ii) payroll; (iii) account payables; and, (iv) other bills that could have been paid had the disaster not occurred. LOANS ARE NOT INTENDED TO REPLACE LOST SALES/PROFITS OR FOR EXPANSION.

  • Applicant must have a credit history acceptable to SBA; the credit history is assessed in a case-by-case basis.

  • SBA will determine that applicant business has the ability to repay the SBA loan.

  • The EIDL funds come directly from the U.S. Treasury and not through a bank. Applicants do not go through a bank to apply but apply directly at DisasterLoan.sba.gov.

  • The program is a “First Come. First serve.”  The key is to apply quickly. If you need financial assistance APPLY NOW. If you may need a loan assistance later, APPLY NOW. There is no obligation to take the loan if offered.

  • Once all required information/documents are submitted in the initial application phase, a SBA loan officer will be assigned who will determine the amount of loan qualified and request from the applicant or appointed representative for more information. Processing of any application will take 21 days or more from filing. 
     

[Read more about the EIDL]

 
DILLARD CAPITAL’S ROLE AS APPOINTED REPRESENTATIVE
 
Dillard Capital is prepared to serve as your appointed representative and, initially, submit the completed loan application on-line on your behalf. Subsequently, as your appointed representative, Dillard Capital will put forth to the SBA loan officer the strongest case documenting your business’ 
 

  • Eligibility for the loan;

  • Negative impact of disaster;

  • Quantifiable economic cost (loss); 

  • Credit worthiness;

  • Repayment ability; and, 

  • Inability to get credit elsewhere. 

 

Also, Dillard Capital will negotiate with the SBA loan officer to avoid “over-abundance” of collateral which will affect the business’ ability to arrange financing in the future, if necessary.