In Business Loan, COVID19, Disaster Financing, Disaster Relief Financing, EIDL Loans, Finance, PPP Loans, Working Capital

We received this question on Twitter: I already received an EIDL loan. Am I eligible to apply for another?

The Economic Injury Disaster Loan (EIDL) PROGRAM was created for individual disasters. For example, this month it may be a tornado in Ohio county. Two weeks from now it could be a flood in the state of Mississippi.

COVID-19 created its own unique disaster. The Small Business Administration (SBA) responded by offering an EIDL loan for the pandemic. If you haven’t yet applied for an EIDL loan, the deadline for new application is December 31, 2020.

We make this distinction because we want to answer this question accurately. The fact is you can apply for  multiple EIDL loans according to the SBA as long as they are for different disasters that have affected you.

In other words, if you received a COVID-19 EIDL loan in April, but your county was affected by a tornado in September (and it’s declared a disaster area), then you can apply for another EIDL for the tornado disaster. We confirmed this last week with the SBA.

You cannot apply for more than one EIDL LOAN for the same disaster. However, the SBA has a provision for up to two years after the disaster, you can request additional funding above the amount of your original EIDL loan.

Leave a comment below and let us know if this is helpful and what other disaster financing questions you may have.

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