The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)

Emergency Economic Injury Disaster Loans (EIDLs)

Expands the SBA’s Disaster Loan Program for loans issued between January 31, 2020 and December 31, 2020 to eligible entities:

  • A business with 500 or fewer employees;
  • Sole proprietorships with or without employees;
  • Cooperatives with fewer than 500 employees; and
  • ESOP sponsors with 500 or fewer employees.


The ACT makes the following changes to EIDLs:

  • Waives rules related to personal guarantees on advances and loans of $200,000 or less to applicants;
  • Waives the requirement that a business be operational one year prior to the disaster (i.e., must be in operation on January 31, 2020); and
  • Allows lenders to approve solely on credit score (no tax return requirement).


Entities applying for loans under the Disaster Loan Program in response to COVID-19 may, during the covered period, request an emergency advance from the SBA of up to $10,000 which does not need to be repaid, even if the loan is denied. Advances are to be awarded within three days of an application.

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