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what does collateral mean for an economic injury disaster loan heres what we learned having processed hundreds of eidl applications during covid first of all for eidl loans of 25 000 or less there is no collateral requirement above twenty five thousand dollars there is a collateral requirement but slow down this does not mean that the SBA is putting a lien on your house and a lien on your car and a lean on your retirement account and lean on your personal bank account no it means that in the event of a default on the eidl loan the collateral can serve as a backup to make the SBA whole when they try to recoup the original loan amount or whatever the remaining balance is kind of like a mortgage in a way but different we have more on our playlist so make sure you subscribe