Still interested in an EIDL loan? Keep in mind that you have to meet a few basic borrower qualifications.
For the most part, these are pretty simple. For example, your business needs to be real, and it needs to have been around before COVID-19. You also need to be a US citizen or permanent resident.
There are some other disqualifying factors though. If you have an open bankruptcy, say, you’ll get rejected. Likewise, felonies and misdemeanors in the last five years can disqualify you. And if you owe child support (more than 60 days delinquent), that will get your application declined too.
You also have to meet some basic credit qualifications. The SBA doesn’t actually list specific credit requirements, though it has noted that the credit score required for EIDL loans is lower than the required score for other kinds of SBA loans. We’ve seen reports that the SBA is accepting scores as low as 570―which means even borrowers with poor credit can qualify.
Finally, depending on how big of a loan you want, you may have to offer up collateral and a personal guarantee. Loans over $25,000 require collateral, and loans over $200,000 require a personal guarantee.
If all that looks good to you, then you can go ahead and submit an EIDL application.
Unlike other types of SBA loans, EIDL loan applications go straight to the SBA itself―not through a lender. You can fill out the SBA form on its website. (Expect it to take around two hours or so.)
Remember, EIDL loan program applications are due by December 31, 2021. We don’t suggest procrastinating, though. SBA loans usually take a long time to get approved and funded, and EIDL loans are no exception.
The SBA says you should expect the EIDL loan funding process to take at least 21 days. The sooner you apply, the sooner you can get your loan.