SBA Economic Injury Disaster Loans FAQs
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SBA Economic Injury Disaster Loans (EIDL) FAQs

During the crisis that is COVID-19, the Small Business Administration is working with the support of Congress to provide additional support to small businesses through the Disaster Loan program. These loans are made directly from the SBA to the business. During Hurricane Katrina catastrophe, there were over 300,000 applications processed through the SBA at their processing centers. HospitalityMaine is encouraging businesses to apply for this loan to provide them with another potential channel to access capital during this difficult time. If you have initial questions about this program, please contact Gwen Perry: or via mobile at 207-939-5315.


Q: What is the Economic Injury Disaster Loan and what is it for?

A: The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans to small businesses suffering substantial economic injury as a result of COVID-19.

Q: Who may be eligible for this loan?

A: In order to be eligible, you must be a small business (500 employees or less). Common eligible businesses include: restaurants, hotels, tourism-based businesses, wholesalers, and many more.

Q: What if there is a program that better suits my business’ needs that is developed or is already in existence. Should I still apply?

A: Yes – it does not cost money to apply, and in the event that other programs (for example, the CARES Act) do pass and prevent you from receiving funding from both of these channels, you are not obligated to accept the loan, and the turnaround time for EIDL approval will take a few weeks. You can always withdraw your application or decline the loan if the terms and amount are not amenable to you.

Q: How much money can I apply for?

A: You will not be asked how much you would like to borrow. The SBA uses the information you provide to determine the loan amount. Small businesses may receive a secured loan up to $2 million, and an unsecured loan of up to $25,000.

Q: What determines my loan amount, if I qualify?

A: The loan application is credit scored. It is unclear what the minimum credit score is that the SBA requires. If you are approved for the loan, it will be your average gross profit multiplied by 6, subject to review by the SBA.

Q: What if I have a loan with the SBA already?

A: Talk to the lending institution which issued that loan and ask them about deferments. Although the SBA cannot mandate that existing loans you have with them are deferred, it is a route to consider to help assist you with cash flow issues during this time.

Q: What are the funds allowed to be used for?

A: Working capital: rent, payroll, utilities, health insurance, property insurance, advertising, accounts payable, debt payments, and short term debts.

Q: What can I not use the funds for?

A: Paying out bonuses, stockholder loans, to buy assets, to improve property, or to expand the business.

Q: What are the terms of the Economic Injury Disaster Loan?

A: Rate of 3.75%, no payments for 12 months (although interest will accrue), loan terms of up to 30 years with no prepayment penalty.

Q: How do I apply?

A: Apply online or by mail.

             By Mail:
U.S. Small Business Administration
Processing & Disbursement
14925 Kingsport Road, Fort Worth, TX 76155

Q: Who can I ask for help with the EIDL application process to make sure that it is filled out correctly?

A: Contact one of the SBA’s resource partners and request an appointment with a business counselor. All services are completely free of charge, and staff at the following organizations have been trained in properly filling out the EIDL application:

Q: What kind of information do I need to get this process started?

A: Contact information and social security numbers for all those whose name will be on the application, your employer identification number (EIN), insurance information, and financial information: income, account balances and monthly expenses). Know the total amounts and payments due for debts that will be paid over the next 10 months or longer.