COVID-19 Resources

COVID-19 EIDL Disaster Loans Give Small Businesses a $10k Emergency Grant within 3 Days

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COVID-19 EIDL Disaster Loans Give Small Businesses a $10k Emergency Grant within 3 Days

A model of a small business, with a man holding an umbrella over it. Depicting EIDLs helping small businesses during coronavirus.

Brenda Krauss is a Senior Online Marketing Specialist for, and

What is an EIDL Disaster Loan?

An Economic Injury Disaster Loan (EIDL) is a low-interest loan offered by the Small Business Administration (SBA) to help small businesses recover from economic injury caused by a declared disaster, such as the coronavirus pandemic.

The COVID-19 EIDL program is now available in all 50 states and U.S. territories. In addition, the Coronavirus Aid, Relief, and Economic Security (CARES) Act has modified EIDLs by relaxing eligibility guidelines and including a $10,000 advance emergency grant. The grant is not subject to repayment and will be received within 3 days of approval.

How to Apply for an EIDL:

  • To apply for an EIDL, visit the SBA’s online application portal at and fill out the online application. You can either submit it online, or print it out and mail it
  • Loans may also be available through certain authorized SBA lenders
  • If you have questions or problems providing the required information, contact the SBA Customer Service Center at 1-800-659-2955 or

How the EIDL Emergency Grant Program Works:

  • EIDLs allow eligible businesses to borrow up to $2 million
  • Under the CARES ACT, borrowers can request a $10,000 emergency advance on their loan, which will be treated as a grant and not subject to repayment
  • The borrower will receive the grant money within 3 days

Who is Eligible for an EIDL:

  • A business that suffered substantial financial loss as a result of COVID-19 and can be identified as one of the following:
    • A small business with less than 500 employees
    • A sole proprietor, independent contractors or self-employed person
    • Private non-profit organization or 501(c)(19) veterans organizations
  • Businesses in certain industries with more than 500 employees that meet SBA’s size standards for those industries
  • Under the CARES ACT, applicants do not have to be in business for the 1-year period before the disaster, but need to be in operation on January 31, 2020

What an EIDL Can Be Used For:

  • The loan can be used for working capital, paying fixed debts, payroll, accounts payable, and paying other bills
  • The loan is not intended to replace lost sales or profits and cannot be used for certain purposes, including to refinance debt

The SBA has streamlined the EIDL application process

No tax documents are required at all. The loan approval process will be based entirely on the applicant’s credit score or other appropriate methods. There is a self-certification process, so no time is wasted with a third party certifier. Learn more about all the federal, state and local COVID-19 programs, as well as private sector COVID-19 programs.

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Brenda Krauss is a Senior Online Marketing Specialist for, and
Brenda regularly writes about small business trends, growth strategies and exit planning, and develops educational materials for entrepreneurship. She has over a decade of experience in marketing and communications for business, commercial real estate and financial services. In addition to writing, Brenda enjoys traveling abroad and exploring the outdoors.