Look at EIDL Advance or EIDL Loan for Business Funding


Funding has been renewed for the Small Business Administration's "Economic Injury Disaster Loan" program, which can help your business during this difficult season of COVID-19. Small businesses -- including sole proprietors, independent contractors, and the self-employed -- can apply for funding through EIDL (the acronym is pronounced like "idle").


I recently spoke with both the Director and Deputy Director at the South Dakota SBA office in Sioux Falls, and I'm passing along their very helpful information here.


  • Even though the program is technically open through Dec. 31, they recommend applying as soon as possible.

  • There are two parts of the EIDL program: the EIDL loan and the EIDL loan advance.

  • The EIDL loan is an actual loan: a 30-year note at 3.75% interest for small businesses or 2.75% for nonprofits.

  • The EIDL loan advance is a grant that does not have to be paid back. Small businesses can receive up to $10,000 in an EIDL loan advance, calculated at $1,000 per employee.

  • When you apply for the Economic Injury Disaster Loan, check both boxes: for the loan itself and for the loan advance. Once your application is processed, you will receive the EIDL loan advance portion (the grant) as well as a loan offer for the pay-back portion.

  • Once you get your loan offer, you can "take it or leave it," meaning take the full loan offer, turn down the loan offer, or take a portion of the loan.

You can apply for the EIDL (loan and/or loan advance) online at this link.


On a related note, signup for the SBA's Paycheck Protection Program (PPP) has been extended through Aug. 8. Small businesses -- including sole proprietors, independent contractors, and the self-employed -- can apply for PPP at this link.


The SBA officials I spoke with said that, yes, even if you have received PPP funding, you can still apply for an EIDL loan or loan advance. They advise that EIDL and PPP funds should not be used for the same payroll at the same time. When you receive funding through these Small Business Administration programs, one "best practice" is to keep them separate from other operational funds. This makes it easier to track your spending and easier to provide any necessary follow-up paperwork.


Clark County businesses, let me know if I can help in any way!


Best regards,


Kristin Vandersnick, Executive Director

"Choose Clark County" economic development

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