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1 1 (April 30, 2020)

handle is hein.crs/govdaed0001 and id is 1 raw text is: . ..- .Nxxx K .\ SBA EIDL and Emergency EIDL Grants for COVID-19 Updated April 30, 2020 Congress increased eligibility for certain businesses and organizations for Small Business Administration (SBA) economic injury disaster loans (EIDL) and established an Emergency EIDL Grant program under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) to provide short- tennm cconomic relief to corain small businesses and nonprofits affected by COVID-1 9. This Insight provides a brief overview of EIDL, including eligibility and loan terms. It also provides an overview of Emergency EIDL Grants, and describes how EIDL can be used in conjunction with Paycheck Proteclion Prograin (PPP) ioans. EIDL eligibility and loan terms under the CARES Act differ from EIDL provided for other disasters. For non-coronavirus EIDL information, see SBA Disaster Loarl Progrml: Frequently Asked Qucstions. EIDL Overview EIDLs provide up to $2 million, with a loan term of up to 30 years, which can be used to pay for expenses that could have been met had the disaster not occurred, including working capital needs such as fixed debt and payroll and other operating expenses. COVID-19-related EIDLs have an interest rate of 3.75% for businesses and 2.75% for nonprofits and have an automatic one-year deferment on repayment (the first payment is not due for one full year, although interest does accrue). Due to high demand, the SBA is limiting COVID-19-related EIDLs to $15,000 and, as discussed below, the SBA is limiting Emergency EIDL grants to $1,000 per employee, up to the statutory cap of $10,000. EIDL Eligibility Under the CARES Act, COVID-19-related EIDL eligibility has been expanded, through December 31, 2020, to include businesses with 500 or fewer employees; sole proprietorships (with or without employees); independent contractors; cooperatives; employee-owned businesses; tribal businesses; and agricultural enterprises with 500 or fewer employees. EIDL eligibility also includes small agricultural cooperatives, small aquaculture businesses, and nurseries deriving more than 50% of their annual receipts from the production of nursery or other agricultural products. Congressional Research Service https://crsreports.congress.gov IN11370 CRS NSMGHT Prepared for Members aisd C o m m itte esn o ff C oo r-_rr ss s ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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