As part of an expanded Economic Injury Disaster Loan (EIDL) Program, the U.S. Small Business Administration (SBA) will provide a $10,000 loan advance to anyone applying for EIDL which is subject to loan forgiveness reduction under the Paycheck Protection Program (PPP).
According to the SBA website, “small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid, but will reduce loan forgiveness under the Paycheck Protection Program.” See more about this below. (For more information on the Paycheck Protection Program, click here.)
When you apply for the EIDL using the SBA’s online application, there is an extra checkbox to click for the EIDL advance. It is our understanding that:
- This payment is supposed to be disbursed within three days.
- Even if you are declined for the EIDL, you will be approved for the $10,000 advance.
- If you are accepted for funding from the EIDL (beyond the $10,000 advance) you do not have to accept the additional funding.
If you are applying for the EIDL loan for the first time, be certain to check the box for the $10,000 loan advance.
If you filled out the application before March 30, the SBA says you can go back and reapply to receive the $10,000. Be sure to reference your earlier application.
Click here to access the SBA loan application, and fill out the required information. You’ll need to provide your bank information. Once approved the money will be deposited directly into your account.
One thing to note in advance of completing the application is the SBA requires you to provide amounts for total sales and total cost of goods sold from 02/01/19 through 01/31/20.
Please remember while you are able to participate in BOTH the Paycheck Protection Program (PPP) and the EIDL, you may not use them for the same purpose. If you apply for the $10,000 advance from the EIDL and are accepted for the PPP the $10,000 advance will REDUCE the amount of loan forgiveness eligible. Therefore, it may not be necessary to apply for both.
If you are NOT planning on using the PPP we would recommend you consider applying for the EIDL advance.
We are here to help. If you need assistance with the information required for the loan application please reach out to your DunlapSLK team member.