What Is EIDL And How Can It Help You? A Guide For Small Businesses

What Is EIDL And How Can It Help You? A Guide For Small Businesses

Many businesses fail to see the light at the end of the tunnel during times of economic turbulence or natural disasters. The supply chain disruptions and the overall uncertainty leaves businesses in turmoil as they struggle to manage daily operations. This is especially true for small businesses experiencing rapid growth and scaling quickly due to the ever-increasing demand.

The Small Business Administration (SBA) offers a helping hand to struggling businesses during unforeseen circumstances through the Economic Injury Disaster Loan (EIDL). The EIDL offers low-interest disaster loans to help businesses recover from disasters and economic upheavals.

The EIDL is a long-standing SBA initiative formed to help businesses, homeowners, and tenants affected by declared disasters. The Coronavirus Aid, Relief, and Economic Security (CARES) Act expands EIDL’s horizons to cover and assist all agricultural businesses suffering from the Covid-19 crisis. Businesses in Colorado, Florida, and Georgia can seek assistance from well-reputed companies like Versa Business Systems.

Who Can Avail the SBA Disaster Loan?

The SBA Disaster Loan is applicable to the following categories:

Covid-19 EIDL

As mentioned above, this EIDL category was formed recently to incorporate businesses struggling due to the pandemic. If you’re a small business operating in the agricultural industry with less than 500 employees and have suffered substantial losses during the pandemic, then you’re eligible for facilitation through the Covid-19 EIDL.

Businesses can utilize the EIDL for working capital and manage regular operating expenses, including health care benefits, rent utilities, and payments of fixed debts.

When discussing eligibility, it is essential to remember that all businesses engaged in the production of fiber, food, ranching, aquaculture, livestock raising, and other agriculture-related farming activities defined by SBA can get the special Covid-19 EIDL.

Other Forms of Disaster Loans

Since Covid-19 was an international emergency, the public sector made special arrangements to assist the most vulnerable segments of the economy. However, the EIDL was initially formed to assist the people afflicted by the following disasters.

  • Physical Damage Loans If your personal property has been damaged due to natural disasters, then you’re eligible for financial assistance from the SBA.
  • Substantial Economic Injury – Substantial economic injury means the business cannot pay the ordinary and necessary operating expenses.

Non-Covid EIDL relief is available to businesses that cannot obtain credit from other sources. The SBA can lend up to $2 million to help businesses meet their operating expenses and get back on their feet.

Versa Business Systems has established a partnership with the SBA to provide much-needed EIDL relief services for small businesses and startups in Colorado. We also provide businesses with short-term business loans and lines of credit to help them recover from various financial problems. With a swift application process and quality consultation, we provide businesses of the region access to quick and easy funding.

Apply for funding now!