We continue to keep a daily pulse on the evolving nature of the two primary SBA programs targeted to helping small businesses impacted by the COVID-19 pandemic; EIDL (Economic Injury Disaster Loan) and PPP (Paycheck Protection Program).
As a reminder, within the online EIDL SBA loan application there is the opportunity to apply for a separate grant up to $10,000. It is important within the online application that you mark the checkbox to apply for this specific $10,000 advance/grant.
The SBA has indicated that this advance will be deployed “within days of a successful application” and will NOT have to be repaid. In addition, it should be noted that these funds are said to be released whether or not you obtain the loan.
Currently the SBA has not released any additional details relative to what criteria they are using to determine how much “up to” the $10,000 each business will receive or if it will encompass just the flat $10,000 amount. It is also important to note that the advance/grant will reduce any loan forgiveness a business receives under the PPP program. The PPP application now includes a new section for applicants to include whether or not they have put in for the EIDL advance.
For full details on both programs please see our SBA Loan Programs Comparison Grid:
For more direct from the SBA on the advance see link:
Contact us directly at firstname.lastname@example.org should you have any further questions.