SBA Approves $7B in Economic Injury Disaster Loans

On Oct 22, 2020

The U.S. Small Business Administration and its New Jersey District Office reported that the federal agency has approved over a 120,000 Economic Injury Disaster Loans for $7 billion to Garden State small business owners and non-profits who experienced  a temporary loss of revenue due to the ongoing COVID-19 public health situation.

According to SBA Regional Administrator Steve Bulger, who oversees agency programs and services for New Jersey, New York, Puerto Rico and the U.S. Virgin Islands, New Jersey EIDL loan approvals ranked seventh behind only California, Florida, New York, Texas, Georgia and Illinois.

“SBA’s EIDL program has provided over 3.5 million small business owners nationwide with $192 billion in loans,” said Bulger. “The SBA Office of Disaster Assistance is reaching all sectors of small businesses, including agricultural businesses and nonprofit organizations, by providing them a lifeline to help meet their financial obligations and operating expenses that could have been met had COVID-19 not occurred.

“Small businesses throughout New Jersey are using Economic Injury Disaster Loans for working capital & normal operating expenses such as continuation of health care benefits, rent, utilities, fixed debt payments,” added Bulger who also noted that EIDL loan proceeds could not be utilized for the same purposes as Paycheck Protection Program funding or other public assistance programs.

According to SBA New Jersey District Director Al Titone, the agency is still accepting EIDL applications from all qualified small businesses, including agricultural businesses, and private nonprofit organizations. The EIDL application is available 24/7 online via a secure SBA website that can be accessed by the public.

“Small business owners have the opportunity to apply and receive up to six months of working capital,” said Titone. “Loans for small businesses and not profits should consider these low-interest, long term loans that can help them maintain operations during this unprecedented public health situation. Small businesses will receive a fixed 3.75% interest rate on an EIDL, while non-profits are locked into a 2.75% APR .  30-year terms are available with no pre-payment penalties as well. What’s more, small business owners also have the option of deferring their 1st payment for 1 year.”

“There is a lot more work to do, but when you combine the total EIDL and Paycheck Protection Program loans together, small business owners and non-profits throughout New Jersey have received over 277,000 loans for $25 billion.  I would certainly categorize that as significant economic impact spearheaded by the federal government, putting our small business community on the road to recovery,” he added.

Small business owners and non-profit organizations interested in applying for the EIDL program can do so by applying online at https://covid19relief.sba.gov/#/.   For additional  information on the EIDL program view the agency’s Frequently Asked Questions.

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