Apply For A $10K Advance Through The U.S. Small Business Administration's Economic Injury Disaster Loan (EIDL)
Businesses are eligible to apply for an Advance on an EIDL of $1K per employee, with a cap of $10K. This $10K Advance is available to all small businesses without restriction, and is considered "non-taxable relief" that is not required to be repaid.
On March 27, 2020, President Trump signed into law the CARES Act, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). This Advance may be available even if you decide not to take the EIDL loan, your EIDL application was declined, is still pending, and is considered "non-taxable relief" that does not require repayment.
Should a business choose to take the full EIDL from the SBA, any proceeds over and above the initial $10K maximum Advance, will be subject to repayment and normal SBA EIDL terms.
- Loans are up to $2M
- The term is 30 years
- Interest Rates are 3.75% for small business and (2.75% for non-profits)
- The first month’s payments are deferred a full year from the date of the promissory note.
The EIDLs expanded provisions include:
- EIDLS can be approved by the SBA based solely on an applicant’s credit score (not repayment ability and no tax return is required). Mr. Contreras specified that a prior bankruptcy doesn’t disqualify you.
- EIDLS smaller than $200,000 can be approved without a personal guarantee. They are also not requiring real estate as collateral and will take a general security interest in business property.
- Borrowers can receive up to $10,000 in an emergency grant cash advance that will be forgiven and considered "non-taxable relief".
- It expands access to sole proprietors or independent contractors, as well as tribal businesses, cooperatives, and ESOPs with fewer than 500 employees and all non-profits including 501(c)(6)s.