Is My Business Eligible for an Economic Injury Disaster Loan?
Partner Christopher Armstrong was quoted in a Barron's article about eligibility for economic injury disaster loans. U.S. farmers, ranchers, and other agricultural businesses are eligible for an Economic Injury Disaster Loan and an EIDL advance of up to $10,000. Agricultural-related businesses, such as on-farm retail stores and nonprofits that organize farmers’ markets, are also eligible.
Loans granted through the Small Business Administration’s EIDL program differ in size, use, and forgivability from those made through the Paycheck Protection Program (PPP), said Mr. Armstrong. PPP loans are meant to cover payroll costs, mortgage interest, rent, and utilities. The entire loan can be forgiven if SBA conditions are met. EIDLs, in contrast, help small businesses and nonprofits with fewer than 500 employees pay “general operating expenses that could otherwise have been met had the disaster, in this case the COVID-19 pandemic, not occurred,” said Mr. Armstrong. These loans can be up to $2 million and must be repaid. Businesses that are delinquent on existing Small Business Administration loans or any other loans from a federal agency aren’t eligible for EIDL.
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