COVID-19 Disaster Loans Available in Texas

Texas small business can now apply for SBA Economic Injury Disaster Loans (EIDL) to help with the COVID-19 crisis.

What's an EIDL? 

• The SBA EIDL program can provide low-interest loans of up to $2M to businesses and private non-profits.

• EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills.

• The interest rate is 3.75% for small businesses without credit available elsewhere. The interest rate for non-profits is 2.75%.

• EIDLs have long-term repayment options, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based on borrower's ability to repay.

As part of the COVID-19 relief effort, borrowers can also apply for an Emergency EIDL Grant from the SBA to request an advance on the loan of up to $10,000.

• SBA will determine the amount of grant based on the information provided by the borrower.
• SBA must distribute the Emergency EIDL within three days of the request.
• The advance will be considered an Emergency EIDL grant.
• The borrower will not be required to pay back the Emergency EIDL Grant even if they are subsequently denied for an EIDL loan.
• In advance of disbursing the advance payment, the SBA will require that the borrower file a certification, under penalty of perjury, that they are eligible to apply for an EIDL loan.
• The Emergency EIDL Grants will end on December 30, 2020.

How do I apply?

• Online at SBA.gov/disaster

• Need help? Call the SBA's Disaster Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Individuals who are deaf or hard-of-hearing can call (800) 877-8339.

Update: At this time, the SBA is no longer accepting applications for the EIDL.

Source: SBA.gov