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Catalog of Federal Domestic Assistance

Program Descriptions

59.002:  Economic Injury Disaster Loans

Popular Name:  EIDL

Objectives:  To assist business concerns suffering economic injury as a result of Presidential, Small Business Administration (SBA), and/or Secretary of Agriculture declared disasters.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

59.002 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  Eligible applicant must be: A small business concern, small agricultural cooperative or a nursery victim of drought as defined in SBA rules and regulations; furnish evidence of the cause and extent of economic injury claimed and unable to obtain credit elsewhere; and must be located within declared disaster area.

Beneficiary Eligibility:  Small businesses and small agricultural cooperatives benefit.

Credentials/Documentation:  Financial Statements to prove cause and extent of economic injury, establish eligibility and demonstrate repayment ability. A signed IRS Form 8821 to enable SBA to obtain information from IRS and complete copies of Federal tax returns for the past 3 prior years.

59.002 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  This program is excluded from coverage under E.O. 12372. Generally pre-application interviews are held to acquaint applicant with general approach to establishing eligibility and what assistance may be available.

Application Procedure:  Applications are filed with the nearest available SBA disaster area office or special disaster field office. One copy of SBA Form 5 and Form 1368 are provided for this purpose.

Award Procedure:  Applicant is notified of approval by authorization letter from SBA disaster office.

Deadlines:  Deadlines are established for each declaration.

Range of Approval/Disapproval Time:  From 7 to 21 days depending on complexity of case and availability of resources.

Appeals:  Requests for reconsideration of a declined application may be made within 6 months of the initial decline action; 30 days from the reconsideration decline action.

Renewals:  Not applicable.

Criteria for Selecting Proposals:  Not applicable.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  Direct loans: Up to $1,500,000; $51,160.

59.002 RELATED PROGRAMS:

• 10.404 Emergency Loans;
• 59.008 Physical Disaster Loans.

59.002 PROGRAM ACCOMPLISHMENTS:

59.002 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  SMALL BUSINESS ADMINISTRATION

Type of Assistance:  Direct Loans; Guaranteed/Insured Loans (including Immediate Participation Loans).

Obligations:  (Loans) Not Separately Identifiable. (NOTE: Obligations for 59.002 are combined with obligations reported under 59.008.)

Budget Account Number:  73-1152-0-1-453.

Authorization:  Small Business Act of 1953, as amended, Section 7(b)(2), Public Law 85-536, 15 U.S.C. 636(b); Disaster Relief Act of 1970, Sections 231, 234, 235, and 237; Public Law 91-606; Public Laws 92-385, 93-24, 94-68, 94-305, 95-89, 96-38, 96-302, 97-35, 98-166, 98-270, 98-473, 99-272, 99-349, 100-220, 100-590, 102-27, and 103-75.

Regulations, Guidelines, and Literature:  13 CFR Part 123; "Economic Injury Disaster Loans for Small Business," DA-3.

59.002 INFO CONTACTS:

Regional or Local Office:  For reference to the Disaster Area Office, see Appendix IV of the Catalog under the Small Business Administration.

Headquarters Office:  Office of Disaster Assistance, Small Business Administration, 409 3rd Street, SW., Washington, DC 20416. Program Contact: Herbert Mitchell. Phone: (202) 205-6734. Use the same number for FTS. E-Mail address: disaster.assistance@sba.gov.

(See Appendix IV for more contact info.)

59.002 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  Not applicable.

Length and Time Phasing of Assistance:  Funds must be used within 6 months of authorization of the loan, unless extended.

Uses and Use Restrictions:  Up to 30 years for repayment. A $1,500,000 limit on amount: actual economic injury governs. Funds not provided merely because of lost income or lost profits. Funds can be provided to pay liabilities which the small concern could have paid if the disaster had not occurred. Working capital for limited period can be provided to continue the business in operation until conditions return to normal. No funds available for realty, equipment repair or acquisition: the interest rate is not to exceed 4 percent.

59.002 POST ASSISTANCE REQUIREMENTS:

Reports:  Documentation of use of proceeds and financial statements must be maintained by borrower.

Audits:  Audits are required only in questionable cases where funds are used contrary to conditions under which they were authorized.

Records:  Complete financial records must be maintained.