As COVID-19 case numbers continue to rise in new hotspots across the country, the Small Business Association (SBA) announced that it is reopening its Economic Injury Disaster Loan (EIDL) and EIDL Advance programs to eligible small businesses experiencing economic impacts from the pandemic.
The EIDL offers these long-term, low-interest loans to help small businesses alleviate the temporary loss of revenue from disaster or unforeseen circumstances. Businesses can use the loans to cover payroll, inventory, debt payments and various other expenses. While EIDL is not a new program, the SBA’s recent announcement extends the program to those businesses affected specifically by COVID-19.
The most noteworthy aspect of EIDL is the EIDL Advance program, which offers eligible small businesses an advance of up to $10,000 and does not have to be repaid. Small businesses also do not have to be formally approved to receive the loan advance, however, the amount will be deducted from total loan eligibility.
If you are interested in learning more about the EIDL and EIDL Advance programs, we can help. Our firm regularly assists small businesses that participate in lending programs offered by the SBA. Please do not hesitate to contact Busch, Slipakoff, Mills and Slomka to learn more.