SBA ECONOMIC INJURY DISASTER LOAN & EMERGENCY ADVANCE

Business, COVID-19

Additional information in the ever changing loan landscape.  It now appears, despite what we were told last Wednesday, April 1, 2020, you can apply for both loans.  Click here to access the SBA frequently asked questions and click here for a more reader friendly version.

Las updated 4/7/2020 9:00 a.m.

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Due to the rapidly changing information related to the CARES Act we have updated the information below and included more links directly to the U.S. Treasury and SBA websites.

Please continue to check these resources as they are changing not by the day but by the hour.

We are continually updating ourselves and encourage you to call us with your questions as you navigate the various loan programs.

Below is a general overview of the program but you MUST refer to the websites above for specific details, the below cannot be relied upon for anything but general information.

Last updated 4/4/2020  9:00 a.m.

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Overview

The Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily expands eligibility for SBA economic injury disaster loans (EIDL) and provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within 3 days of applying for an SBA Economic Injury Disaster Loan (EIDL).  To access the advance, you first apply for an EIDL and then request the advance.  The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent, and mortgage payments.

Eligibility

In addition to the entities that are already eligible for SBA disaster loans (small businesses, private non-profits, and small agriculture cooperatives), eligibility is temporarily expanded to include:

  • Business entities with 500 or fewer employees:
  • Sole proprietorships, with or without employees
  • Independent contractors
  • Cooperatives and employee owned businesses
  • Tribal small businesses
  • Private non-profits of any size.

Additionally, you must have been in business as of January 31, 2020.  Expanded eligibility criteria and the emergency advances are only available between January 31, 2020 and December 31, 2020.

How to Apply

  • You can apply for an EIDL online with the SBA.
  • When you apply, you can request an emergency advance of $10,000.
  • The SBA will provide the advance within 3 days of receiving your application.
  • You will not have to repay the advance if your application for a loan is denied.

Can I apply for other SBA loan programs?

Yes, it appears you can.

More Information

For more information about SBA loan programs, please visit the Small Business Administration.

For more information from the U.S. Department of Treasury information on the loan program including a link to the application click here.