What to know if your business needs an Economic Injury Disaster Loan

The US Small Business Association (SBA) announced last week that an in-person Business Recovery Center would open in Philadelphia to help small business owners apply for Economic Injury Disaster Loans (EIDL) following the collapse of I-95 in June.

You might by familiar with EIDLs because of the COVID-19 pandemic, when a reported 3.8 million small business owners received this type of funding from the federal government. EIDLs are working capital loans to assist organizations impacted by a declared disaster.

Before applying for a loan, businesses must be registered with Federal Emergency Management Agency. Then, business owners can apply at a Business Recovery Center or online, or call SBA customer service at 800-659-2955.

The maximum loan for businesses impacted by the I-95 collapse is $2 million, plus fixed interest rates with a maximum of 4%, up to 30-year repayment and zero interest rate for the first 12 months. Loan amounts and terms are set by the SBA on a case-by-case basis based on each application.

Business owners in Philadelphia County, Bucks Country, Delaware County and Montgomery County in Pennsylvania, along with Burlington County, Camden County and Gloucester County in New Jersey, are eligible to receive help at the new Business Recovery Center.

The benefit of the new center, according to Francisco Sanchez, Jr., associate director of the Office of Disaster Recovery and Resilience: “Business owners can meet in-person with our specialists to apply for SBA disaster loans and get information on the full breadth of our programs designed to help them navigate their recovery.”

This hub opened on July 7 at the Philadelphia Fire Department Engine 38 Training Facility, 4931 Magee Ave. It is open from 9 a.m. to 6 p.m. Monday through Friday, and 10 a.m. to 2 p.m. on Saturday. The center will permanently close on July 21.

The deadline to submit EIDL applications is March 29, 2024.

Sarah Huffman is a 2022-2024 corps member for Report for America, an initiative of The Groundtruth Project that pairs young journalists with local newsrooms. This position is supported by the Lenfest Institute for Journalism.