![]() ![]() Here’s what you need to know about the new loan limits. We can help you determine whether you’re eligible and, if so, complete the application process.Did you receive an economic injury disaster loan (EIDL) from the Small Business Administration (SBA)? While these loans were previously limited to $150,000, the SBA recently announced the limit has been increased to $500,000. The EIDL program may not have received as much attention as the PPP, but it’s equally valuable to small businesses and nonprofits striving to remain operational during the ongoing public health and economic crisis. Thus, an applicant with three employees would receive an advance of only $3,000. However, in April, the SBA announced that it has implemented a $1,000 cap per employee on EIDL advances up to the $10,000 maximum. ![]() ![]() Recipients of an emergency grant don’t have to repay it - even if the business is eventually denied an EIDL. Repay other obligations that cannot be met because of revenue losses.Meet increased costs to obtain materials unavailable because of supply chain disruptions,.Retain employees during business disruptions or substantial shutdowns,.Provide paid sick leave to employees unable to work because of COVID-19,.The grant is to be paid within three days and must be used to: Under the CARES Act, EIDL applicants may request an Emergency Economic Injury Grant, also referred to as an “EIDL advance,” of up to $10,000. (Other limitations apply.) Emergency Grants Loan funds also cannot be used to pay federal, state or local tax penalties, or any criminal or civil fine or penalty. These may include fixed debts (such as rent or mortgage), payroll, accounts payable and other bills that could’ve been paid had the disaster not occurred and aren’t already covered by a PPP loan.ĮIDL proceeds may not be used to refinance indebtedness incurred before the COVID-19 crisis or to pay down loans owned by the SBA or other federal agencies. Recipients must use EIDL proceeds for working capital necessary to carry a business until resumption of normal operations and for expenditures needed to alleviate specific economic hardships related to the pandemic. A borrower of $200,000 or less doesn’t need to provide a personal guarantee. Plus, the Coronavirus Aid, Relief and Economic Security (CARES) Act has temporarily waived requirements that applicants must have been in business for one year before the crisis and be unable to obtain credit elsewhere. The first payment is deferred for one year. The loans have terms of up to 30 years and interest rates of 3.75% for businesses and 2.75% for nonprofits. EIDL funds come directly from the SBA and provide working capital up to certain limits. Program OverviewĪpplicants must be businesses with 500 or fewer employees, sole proprietors, independent contractors or certain other small entities. If your company hasn’t been able to procure financing through the Paycheck Protection Program (PPP) - or even if it has - an EIDL may provide another avenue to relief. The EIDL program offers long-term, low-interest loans to small businesses and nonprofits. Just last week, the Small Business Administration (SBA) announced that it has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program to eligible applicants still struggling with the economic impact of the COVID-19 pandemic. For more information on that, please go here: If you are a business and interested in a stimulus program, the ERC may be a good option. As of May 6, 2022, SBA is no longer processing COVID-19 EIDL loan increase requests or requests for reconsideration of previously declined loan applications due to a lack of available funding. Updated: As of January 1, 2022, SBA stopped accepting applications for new COVID-19 EIDL loans or advances. ![]()
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