What the SBA says about EIDL terms
An Economic Injury Disaster Loan is a US Small Business Administration loan that helps small businesses and most private nonprofits cover working capital and normal operating expenses after a declared disaster, when SBA decides they cannot get credit elsewhere. SBA's disaster loan page gives the terms this calculator uses: a fixed rate that will not exceed 4%, a term of up to 30 years, the first payment deferred for 12 months with no interest accruing in the first 12 months, no prepayment penalty or fees, and collateral for loans over $50,000. The combined limit with a physical disaster loan is $2 million.
SBA sets the exact rate and term in your loan authorization from your ability to repay. Enter those figures. SBA does not publish a payment formula or say whether the maximum maturity counts from closing or from the first payment, so the calculator assumes equal monthly payments of principal and interest and lets you choose how the term is counted.
Worked example: a $150,000 loan at 4% over 30 years
If the 30-year term is counted from closing, the first payment is due after a 12-month deferment and the remaining 348 payments are $728.96 a month. You pay $253,678.15 in total, of which $103,678.15 is interest, or 69.12% of the loan.
If the term starts at the first payment, there are 360 payments of $716.12 and the interest rises to $107,804.26.
Extra payments
SBA states there is no prepayment penalty or fee. Paying an extra $250 a month from the first payment ends the loan after 215 months of payments instead of 348, saving 133 months and $43,378.38 of interest.
Rate, term and size
A lower rate cuts the payment. At 3.75% over 20 years, counted from closing, a $75,000 loan is $460.43 a month. The largest amount you can enter is $2,000,000, which at 4% over 30 years is $9,719.47 a month.
SBA's page gives an interest rate ceiling, not the rate for your loan, so enter the rate in your loan authorization. The calculator accepts rates up to 4%.
Collateral
SBA's EIDL page says collateral is required for loans over $50,000, with real estate preferred. For loans of $200,000 or less it will not require the owner's primary residence if the owner has other assets of equal quality and a value equal to or greater than the loan. The calculator repeats the rule that applies to your amount, but SBA decides on your application.
COVID-19 EIDL loans
This page models the current disaster EIDL terms on SBA's page. COVID-19 EIDL loans had their own terms, which SBA describes on its COVID-19 EIDL pages and which your loan documents set. Check those for a COVID-19 loan.
For an ordinary term loan, use the business loan calculator.
For short-term funding, use the working capital loan calculator.
Inputs for the EIDL calculator
The term is counted from
SBA does not say whether the maturity includes the deferment. Check your authorization.
Loan amount
The EIDL amount. SBA's combined limit with a physical loan is $2 million.
Interest rate
The fixed rate in your authorization. SBA says it will not exceed 4%.
Loan term
Up to 30 years, in whole months.
Extra paid each month
An optional overpayment. SBA states there is no prepayment penalty.
CALCULATOR QUESTIONS
SBA EIDL loan calculator questions
What is an Economic Injury Disaster Loan?
It is an SBA loan for working capital and normal operating expenses after a declared disaster. SBA says it is available to small businesses, small agricultural cooperatives, aquaculture businesses and most private nonprofits that cannot get credit elsewhere.
What is the EIDL interest rate?
SBA's page says the fixed rate will not exceed 4%. Your loan authorization shows your rate. At 4%, a $150,000 loan over 30 years counted from closing is $728.96 a month.
Do EIDL loans have a deferment?
SBA says the first payment is deferred for 12 months and no interest accrues in those first 12 months. The calculator starts payments on the full amount after the deferment.
Is there a prepayment penalty on an EIDL?
SBA's page says there is no prepayment penalty or fees. An extra $250 a month on the worked example saves $43,378.38 of interest.
Do I need collateral for an EIDL?
SBA's page says collateral is required for loans over $50,000, with real estate preferred. Ask SBA how this applies to your case.
What is the maximum EIDL amount?
SBA's page sets a combined maximum of $2 million with a physical disaster loan. It does not give a separate EIDL cap. At 4% over 30 years from closing, $2,000,000 is $9,719.47 a month.