Who is Eligible for an EIDL?
Learn who qualifies for EIDL disaster loans, understand the eligibility requirements, and know what disqualifies a business from receiving SBA disaster assistance.
EIDL eligibility depends on both the specific disaster declaration and general SBA requirements. While COVID-19 EIDL is no longer available, the SBA continues to offer disaster loans for other declared disasters with similar eligibility criteria.
Basic Eligibility Requirements
To qualify for an EIDL, you generally must:
- Be located in a declared disaster area: Your business must operate in an area where a disaster has been officially declared
- Demonstrate economic injury: Show that the disaster caused economic harm to your business
- Be a small business or nonprofit: Meet SBA size standards for your industry
- Have creditworthiness: While requirements are less strict than traditional loans, you need acceptable credit
- Have no other available credit: Unable to obtain funding from other sources on reasonable terms
Eligible Business Types
EIDL is available to:
- Small businesses (meeting SBA size standards)
- Most private nonprofits
- Agricultural cooperatives, aquaculture enterprises, and nurseries
- Small agricultural cooperatives
- Sole proprietors and self-employed individuals
- Independent contractors
Who is Not Eligible
The following generally cannot receive EIDL:
- Businesses engaged in illegal activity
- Gambling businesses: Casinos, racetracks, and gambling establishments
- Loan packagers: Businesses that package SBA loans for others
- Multi-level marketing companies: Pyramid schemes and similar
- Political and lobbying organizations
- Businesses owned by incarcerated individuals: Owners currently incarcerated
- Businesses delinquent on federal obligations: Including tax debt or existing SBA loans
Character Requirement
Applicants with criminal records may be ineligible, depending on the nature and timing of offenses. The SBA evaluates character on a case-by-case basis.
Credit Requirements
EIDL credit requirements are more flexible than traditional SBA loans:
- No minimum credit score specified (unlike 7(a) loans)
- Must have "satisfactory" credit history (SBA evaluation)
- Recent bankruptcies may require additional review
- Outstanding judgments or delinquent debts can affect eligibility
Documentation Needed
To prove eligibility, you typically need:
- Proof of business existence (licenses, registrations)
- Tax returns showing pre-disaster revenue
- Financial statements demonstrating economic injury
- Personal identification for all owners
- Documentation of disaster impact on your specific business
If a disaster is declared in your area, apply promptly even if you are unsure about eligibility. The SBA will determine eligibility during their review process.
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Read more →Important Disclosure
Not Financial Advice: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. You should consult with qualified professionals before making any financial decisions.
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Rate Information: Rates, terms, and fees mentioned in this article are estimates based on publicly available information and may not reflect current market conditions or specific lender offers. Actual rates depend on creditworthiness, business financials, and lender policies.
Information May Change: Financial markets, lending regulations, and economic conditions are subject to rapid change. While we strive to keep our content accurate and up-to-date, information in this article may become outdated. Always verify current rates, terms, program availability, and regulatory requirements with lenders and official sources before making financial decisions.