SBA Economic Injury Disaster Loan (EIDL)

Last Updated 4-16-2020.

CRITICAL UPDATE - Funds for the Paycheck Protection Program (PPP) have nearly been exhausted. Due to the overwhelming need for support, the SBA has processed 14 years worth of loans in 14 days. Currently, there are no additional appropriations, though it is possible that Congress will approve additional dollars for this program. Here is what we know:

  • By law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations.
  • SBA and Treasury urge Congress to appropriate additional funds for the Paycheck Protection Program—a critical and overwhelmingly bipartisan program—at which point we will once again be able to process loan applications, issue loan numbers, and protect millions more paychecks.
  • Due to limited appropriations funding, the application portal for the EIDL–COVID-19 assistance program (EIDL loans and EIDL Advances) is temporarily closed.
  • Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

Community Ventures is not processing applications for the Paycheck Protection Program. We are still providing technical assistance to clients who may have questions regarding this or other assistance, but applications need to be made through your bank or credit union. If you have questions, please reach out to your Business Development Specialist or to our Support Team at

Community Ventures is working to support the communities across Kentucky as we all work through the impact of the Coronavirus pandemic. Our commitment to our mission has never been stronger. As priorities shift, we solidify our commitment to helping Kentucky families struggling to manage the fallout.

As the federal government, state government, and private enterprises develop ways to support people through this crisis, we will provide information, access to resources, and answers to your question, as best as we can.


SBA Economic Injury Disaster Loans (EIDL)

The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).

SBA Economic Injury Disaster Loans are available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
  • The fixed interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
  • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
  • Borrowers are not obligated to take the full amount approved. But it may be better to accept the full amount, because the loan will be paid in installments, and the borrower may cancel the remainder of the loan after any installments if the remainder of the loan is no longer needed.
  • First month’s payments are deferred one year from the date of the promissory note.
  • These loans can be approved by SBA based solely on an applicant’s credit score (not repayment ability and no tax return is required).
  • Loans smaller than $200,000 can be approved without a personal guarantee. Real estate is not required as collateral. General security interest in business property can be collateral.
  • Borrowers can receive $10,000 in emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue loss.
  • Program expands access to sole proprietors or independent contracts, as well as tribal businesses, cooperatives, and ESOP’s with fewer than 500 employees and all non-profits including 501(c)(6)s.
  • Applicants must have been in business by January 31, 2020 to qualify.
  • TIP: The online application is quite lengthy. The SBA recommends printing and completing the paper form FIRST, because it will allow you to retrieve any documents or information needed for the application. Once the paper form is completed, then enter the completed information into the online application. (THIS IS A TIME SAVER).
  • For those that apply for the Economic Injury Disaster Loan (EIDL), an advance of up to $10,000 will be provided to small businesses within several days of applying for the loan.
  • The advance does not need to be repaid, even if the grantee is subsequently denied an EIDL.
  • Funds can be used to provide paid sick leave to employees, maintain payroll, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
  • Eligibility: Advances are available to small businesses, sole proprietors, independent contractors, tribal businesses, as well as cooperatives and employee-owned businesses in operation on January 31, 2020.
  • You can apply at this link:
  • The latest guidance indicates that borrowers CAN apply for the PPP loan and an Economic Injury Disaster Loan (EIDL) as long as the loans are for different types of expenses.

  • Call the SBA Disaster Assistance Customer Service Center Toll Free at 1-800-659-5955 (TTY: 1-800-877-8339).
  • Email them at


$10,000 Advance on EIDL

As part of the CARES Act’s provision of assistance to businesses applying for an Economic Injury Disaster Loan (EIDL), small businesses and non-profits may also apply for a $10,000 Advance. This Advance may be available even if your application is denied or is still pending.

If you wish to apply for the Advance on your EIDL, please visit as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.

Contact SBA
  • SBA invites applicants to subscribe to its email updates via
  • Follow SBA on Twitter at @SBAgov for the latest news on available SBA resources and services.
  • Contact your local SBA office and resource partners at
  • For additional questions, call 1-800-659-2955.

NOTE: Please be aware of the potential for scams, fraud and abuse, related to the economic recovery from the COVID-19 outbreak. If you have questions or concerns about information you have received about the Paycheck Protection Program, the Economic Injury Disaster Loan, or any other support services available, you can contact us at (859) 231-0054 or email Lew Whalen at We will help to get your questions answered from verified sources.


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