SBA Curtails Acceptance of EIDL Applications
The SBA just announced they are unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
Due to incredibly high demand, the SBA had recently amended some key benefits of the EIDL Loan program. With millions of applications flooding the SBAs system, we see reductions to the EIDL Grant and the maximum loan amount available through an EIDL Loan. SBA is trying to assist as many small businesses as possible, and these updates allow more applicants the chance to receive funding. Below are the specific changes:
- $10,000 EIDL Loan Advance limited to $1,000 per employee on payroll
- $15,000 EIDL maximum loan amount, reduced from $2,000,000
- Maximum total benefit limited to $25,000 per small business owner, based on the advance and loan available
On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.
We will continue to provide updates on the status of the EIDL loan application acceptance. You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders.
As of April 16, 2020 the SBA is advising applicants that funds for the PPP loan program have been exhausted. Congress is currently negotiating and working to infuse an additional $250 billion into the program. This guidance is applicable when the SBA begins accepting applications again. We will continue to provide updates as more information becomes available.
Questions or concerns? Reach out to a Wiss team member for more information or assistance.