The U.S. Small Business Administration has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to provide additional assistance to nonprofits and small businesses that have been impacted by the COVID-19 pandemic.
Nonprofits can apply for loans that mature in as many as 30 years with the first payment deferred for one year. The interest rate for non-profits is 2.75%.
“You will not find better terms anywhere else,” said Kevin Monahan, a consultant at the Small Business Development Center at the University of North Florida. The assistance is also timely.
“The slipping of the economy creates a decline in giving leading to less money for operations and, at the same time added demand for services for most charities,” Monahan said. “Charities that learned from the last recession how to recover will fare better than nonprofits that formed in the last few years.”
Nonprofits can use EIDL assistance to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan.
Organizations may also request an EIDL Advance of up to $10,000. EIDL Advances provide emergency economic relief to businesses that are experiencing a temporary loss of revenue. Nonprofits do not have to repay advances and can receive them even if they are not approved for loans.
This is the first time nonprofits have been eligible for SBA money, Monahan said. “There has been an incredible number of for-profits and nonprofits who have applied.”
The SBA resumed processing EIDL applications that were submitted before the portal stopped accepting new applications on April 15 and will be processing those applications on a first-come, first-served basis. It began On June 15, SBA began accepting new EIDL and EIDL Advance applications on June 15. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
Organizations who applied in April have mostly been funded by now, Monahan said. “The SBA is our smallest federal agency but money is flowing.”
Nonprofits interested in seeking SBA disaster assistance can get additional information at SBA.gov/Disaster.
The Small Business Development Center at the University of North Florida also offers help for local nonprofits.