In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan immediate advance of up to $10,000 and loan up to $2 million.
You can get up to a $10,000 grant from the SBA for your small business while you wait for your larger CARES Act Paycheck Protection Program (PPP) Loan or SBA Economic Injury Disaster Loan (EIDL) Follow the below steps:
This grant provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). The advance does not need to be repaid under any circumstance, and may be used for business purposes, including: 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.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $10 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
Loan forgiveness (small businesses that take out these loans can get some or all of their loans forgiven. Generally speaking, as long as employers continue paying employees at normal levels during the eight weeks following the origination of the loan, then the amount they spent on payroll costs (excluding costs for any compensation above $100,000 annually), mortgage interest, rent payments and utility payments can be combined and that portion of the loan will be forgiven. Any loan amounts not forgiven at the end of one year are carried forward as an ongoing loan with terms of a max of 2 years at 0.5% interest. The 100% loan guarantee remains intact.)
Business owners can apply for both types of relief funding. Outlined below, and to the the best of our ability based on the information available, are the differences between the two programs and the broad strokes of what each entails.
If you’ve applied for CARES Act PPP financing with us, we are working diligently to complete your file for assignment, and final underwriting. Complete applications will begin to be processed for funding on a first come, first served basis, as soon as April 3rd, 2020.
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