• Set payments at regular intervals
• Can be used for a wide variety of purposes
• Relatively low interest rate
• Long repayment schedule

Drawbacks

• Lengthy application process
• May carry early payment penalty
• Variable interest rates may increase

An SBA economic injury disaster loan (EIDL) is for small businesses, small agricultural cooperatives, and most private nonprofit organizations located in a declared disaster area and which have suffered substantial economic injury may be eligible for an SBA Economic Injury Disaster Loan (EIDL). An EIDL is a short to medium term loan which will provide funds to cover normal operating expenses during the recovery period. Also available to nonprofits, this loan might be used to cover rent or payroll, or to pay vendors.

If you have suffered substantial economic injury and are one of the following types of businesses located in a declared disaster area, you may be eligible for an SBA EIDL:

• Small business
• Small agricultural cooperative
• Most private nonprofit organizations

Available to both for-profit and non-profit businesses a BPDL is a long-term, low rate loan which may be used to repair or replace property damaged by a natural disaster, but only where that property is not already covered by insurance. Interest rate is set based upon the availability of alternate forms of credit. If alternative financing is available, the interest rate will be 8% and 4% if no other forms of financing can be obtained.

Note: Initial disbursement: $25,000. Total loan amount is based upon insurance coverage and construction progress.