## Applying for a Second EIDL Loan: Eligibility and Process
### Eligibility
Businesses and certain non-profits that previously received an Economic Injury Disaster Loan (EIDL) may be eligible to apply for a second EIDL loan. To be eligible, businesses must meet the following criteria:
— **Suffered an economic loss of at least 50% due to COVID-19:** This can be demonstrated through a reduction in revenue compared to pre-pandemic levels.
— **Have used the full amount of their first EIDL loan:** Businesses must have exhausted all funds from their first EIDL loan before applying for a second.
— **Meet the size and revenue requirements:** Businesses with up to 500 employees and annual revenue of less than $2 million may be eligible.
— **Be in good standing with the SBA:** Businesses must have a satisfactory repayment history on any previous SBA loans.
### Loan Amount
The maximum amount of a second EIDL loan is $2 million. The actual loan amount will be based on the business’s revenue and economic loss.
### Interest Rate and Repayment
The interest rate on a second EIDL loan is 3.75% for businesses and 2.75% for non-profits. The loan term is 30 years, with no prepayment penalties.
### Application Process
To apply for a second EIDL loan, businesses must follow these steps:
1. **Gather required documentation:** This includes proof of revenue loss, financial statements, and tax returns.
2. **Create an SBA account:** Businesses must create an account on the SBA’s website at www.sba.gov.
3. **Complete the online application:** The application form can be found at https://www.sba.gov/funding-programs/loans/disaster-assistance/eidl.
4. **Submit the application:** Once complete, businesses can submit their application online through the SBA’s website.
### Processing Time
The SBA typically takes 1-2 weeks to process EIDL loan applications. However, processing times may vary depending on the volume of applications.
### Additional Considerations
— **Businesses that received a Targeted EIDL Advance:** Businesses that received a Targeted EIDL Advance will have the amount of the advance subtracted from their second EIDL loan amount.
— **Businesses that received a Supplemental EIDL Advance:** Businesses that received a Supplemental EIDL Advance will not have the amount of the advance subtracted from their second EIDL loan amount.
— **Repaying EIDL loans:** Businesses that have both a first and second EIDL loan will make monthly payments on both loans.
**Conclusion**
Businesses that have exhausted their first EIDL loan and continue to experience economic hardship due to COVID-19 may be eligible to apply for a second EIDL loan. Businesses must meet the eligibility requirements and follow the application process to be considered for funding.