Business Resources
SBA Reopens $10K EIDL Grant & Loan Program
This is guaranteed money for small businesses, sole proprietorships, and nonprofits.
The Small Business Administration has reopened its Economic Injury Disaster Loan (EIDL) Program. Small businesses no longer have to be in agriculture to apply for the funds earmarked to support them after COVID-19.
The EIDL program includes an up to $10K grant advance. That means you will get a $1,000 cash advance for each employee within your small business (up to $10,000) with no loan or payback requirements. You can also apply if you are a sole proprietor or a nonprofit.
“This advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan,” the SBA confirmed in a recent press release.
Small businesses that missed out on the first rounds of the loan program should apply ASAP. It only takes five minutes.
TIPS:
- Have your EIN ready. If you are a sole proprietor, use your SSN.
- The name on your bank account needs to match business name. If it doesn’t, still apply and then either change the name on current account or open an account that does. (They will ask to resubmit bank info later.)
- Take a screenshot of your application number after you apply. You will NOT receive an email confirmation, so you will need that number if you need to call with questions.
- Be prepared to wait. It has taken 60 days for some businesses to get the money.
Also, be sure to apply for the loan when SBA does finally email you. When else will you be able to access a loan at 3.75% interest rate that is deferrable for a year? Even if you don’t get approved because your credit sank over the past few months, you will have up to six months to get your credit life together and appeal the decision.
There are no restrictions on the cash grant advance. If you get the loan, the SBA states the EIDL loan can be used for “debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan.”
So, what are you waiting for? Click here to apply now.
