SBA Economic Injury Disaster Loans

This information relates to the currently approved program. Significant changes would take place if the bill under consideration in Congress is approved.

SBA Economic Injury Disaster Loans (EIDLs) are very different from traditional SBA loans.

  1. Funds originate from US Treasury, not a bank.
  2. No cost to apply.
  3. No obligation to take the loan if applied for and offered.
  4. Max unsecured loan is $25,000.
  5. Max secured loan is $2 million.
    1. Available business assets need to be pledged. SBA is waiving the requirement to pledge personal real estate.
    2. SBA will NOT decline a loan for lack of collateral, but requires borrowers to pledge what is available.
  6. 3.75% rate for small businesses; 2.75% rate for non-profits
  7. Up to 30 year terms.
  8. Use of funds include paying fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred.
  9. Apply online
  10. SBA Customer Service 800-659-2955;


Financing short-term operating losses with long-term debt can hurt businesses in some situations. However, it may make sense for some businesses to apply and receive approval so funds can be drawn if necessary. For assistance considering and applying for these programs, please call Brian Dalziel at Iowa Lakes Corridor Development Corporation at 712-264-3474 or email him at