What an EDL Is and Who Issues It
An EDL is an Employment Development Loan, issued by California's Employment Development Department (EDD). It is a no-interest loan available to workers who have received unemployment insurance benefits and have exhausted or are about to exhaust their benefits. The EDD offers this loan to help bridge the gap while you search for work or wait for new employment to begin.
The loan is not a grant—you repay it. But because it carries no interest and the EDD does not require a credit check, it is often easier to obtain than a traditional bank loan. The amount you can borrow depends on how much unemployment insurance you received, up to a maximum of $6,000.
You must have received unemployment benefits from California in the past 12 months to be considered. The EDD administers this program directly; you do not go through a bank or third-party lender.
Key Takeaways
- An EDL is a no-interest loan from California's EDD for workers who have used up or are running out of unemployment benefits.
- You can borrow up to $6,000, and the amount depends on how much unemployment insurance you received in the past 12 months.
- You explore directly through the EDD online portal or by phone; no credit check or bank is involved.
- Repayment begins six months after you receive the loan, and you have up to two years to pay it back.
- You must have received California unemployment benefits within the past 12 months to be considered.
Checking Your Unemployment Balance and Loan may be able to access
Before you explore for an EDL, you need to know how much unemployment insurance you have left. Log into your EDD account at edd.ca.gov using your Social Security number and PIN. Under "Claim Information," you will see your remaining balance and the weeks of benefits you have left.
The EDD considers you for an EDL if you have fewer than two weeks of benefits remaining, or if you have already exhausted your benefits. Some workers become may be able to access before their benefits run out; others explore after. Either way, you must have received at least one unemployment payment in the past 12 months.
Write down your remaining balance and the date your benefits expire. You will need this information when you explore. If you cannot access your account online, you can call the EDD at 1-888-209-8124 to ask about your balance and may be able to access.
how the process works for an EDL Online
The fastest way to explore is through your EDD online account. Log in at edd.ca.gov, go to "Unemployment Insurance Claims," and look for the "Loans" section. Select "explore for an Employment Development Loan" and follow the prompts.
You will need to provide your Social Security number, current mailing address, phone number, and email address. The EDD will ask how much you want to borrow (up to your maximum) and confirm that you understand the loan terms—specifically, that you must repay it with no interest over up to two years, and that repayment begins six months after you receive the funds.
The online process takes about 10 to 15 minutes. Once you submit it, the EDD will review your information and send you a decision by mail or email within one to two weeks. If you are approved, the EDD will deposit the loan directly into your bank account or issue a debit card.
explore by Phone or Mail If You Cannot Use the Website
If you do not have internet access or prefer to explore by phone, call the EDD at 1-888-209-8124. A representative can walk you through the process over the phone and answer questions about the loan amount and repayment terms. Have your Social Security number and current address ready.
You can also request a paper process by mail. Call the EDD and ask them to send you an EDL process form. Fill it out, sign it, and mail it back to the address provided. Paper applications take longer—typically three to four weeks from the time the EDD receives your form.
Whether you explore by phone or mail, the EDD will still contact you by mail or email with a decision. Make sure your contact information is current so you do not miss the approval notice.
What Happens After You explore
Once the EDD receives your process, they will verify that you meet the basic requirements: you received unemployment benefits in the past 12 months, you have fewer than two weeks of benefits left (or have exhausted them), and you are not in default on a previous EDL. This review usually takes one to two weeks.
If you are approved, the EDD will send you a notice in the mail confirming the loan amount. They will then deposit the money into your bank account or send you a debit card within a few business days. You can use the funds for any purpose—rent, utilities, food, job search expenses, or other needs.
If you are denied, the notice will explain why. Common reasons include not meeting the 12-month requirement, having too many weeks of benefits remaining, or being in default on a previous loan. You can contact the EDD to ask about reapplying later if your situation changes.
Understanding Repayment Terms and Your Obligations
Repayment of an EDL begins six months after you receive the loan. You do not start paying back when ready. The EDD will send you a repayment schedule in the mail that shows how much you owe each month and when payments are due.
You have up to two years to repay the full loan amount. The EDD will deduct payments directly from your unemployment benefits if you are still receiving them. If your benefits have ended, you will need to make payments by check, money order, or online through your EDD account.
There is no interest on an EDL, so the amount you repay is exactly what you borrowed. If you miss a payment, the EDD may take action to collect the debt, including wage garnishment or tax refund offset. If you have trouble making a payment, contact the EDD as soon as possible to discuss your options.
When You Might Not Be may be able to access for an EDL
You cannot get an EDL if you are in default on a previous EDL or other EDD debt. The EDD will not issue a new loan until you have paid off the old one or made arrangements to do so.
You also cannot get an EDL if you have not received any unemployment benefits from California in the past 12 months. If you worked in another state or received benefits from a different program, you may not meet the requirement. Similarly, if you still have more than two weeks of unemployment benefits remaining and the EDD has not opened a new claim for you, you may be asked to wait until your balance drops.
If you are self-employed or received Pandemic Unemployment information (PUA) or Pandemic Emergency Unemployment Compensation (PEUC), you may still be may be able to access, but the rules are different. Contact the EDD directly to ask about your specific situation.
Frequently Asked Questions
How much can I borrow with an EDL?
You can borrow up to $6,000, but the actual amount depends on how much unemployment insurance you received in the past 12 months. The EDD calculates your maximum loan amount based on your weekly benefit amount and the number of weeks you received benefits. When you explore, the EDD will tell you the maximum you are may be able to access for.
What if I get a job before the loan is approved?
Getting a job does not disqualify you from receiving an EDL. You can still receive the loan and use it to cover expenses while you transition to your new job or if there is a gap before your first paycheck. You will still need to repay the loan according to the schedule, starting six months after you receive it.
Can I use the EDL money for anything I want?
Yes. The EDD does not restrict how you use the loan funds. You can use the money for rent, utilities, food, transportation, childcare, or any other expense. There are no spending requirements or restrictions.
What if I cannot repay the loan on time?
Contact the EDD as soon as you know you will have trouble making a payment. They may be able to work out a payment plan or defer a payment. If you do not contact them and miss payments, the EDD can pursue collection actions, including wage garnishment or offsetting your tax refund.
How do I know if my process was approved?
The EDD will send you a written notice in the mail within one to two weeks of your process. The notice will state whether you were approved or denied and, if approved, the loan amount. You can also log into your EDD account online to check the status of your process under the "Loans" section.