I’d like to repeat what I have recommended several times:
Every business should be applying for both forms of federal assistance, the PPP (with your bank), and EIDL (with the SBA) for their LLC, non-profit, S corporation, sole proprietorship, independent contractor income, or any other business form. (some unique exceptions may apply)
I received an email today directly from the SBA that confirms the $10K Advance amount from the Economic Injury Disaster Loan (EIDL) is a grant, and will NOT be wrapped into the EIDL loan to be paid back.
Here’s part of the email from the SBA’s Disaster Customer Service:
As a result of the CARES Act signed into law by the President on March 27th, eligible small businesses in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan Advance Loans of up to $10,000. This advance is in addition to the traditional Economic Injury Disaster Loan and requires you to complete a short application available on our website.
If we are unable to approve your EIDL application, any Advance loan funds you receive will not have to be repaid.
If we approve your EIDL loan request, any Advance funds you received will be deducted from the loan amount and considered a duplication of benefits, and therefore not have to be repaid.
To apply for a COVID-19 Economic Injury (EIDL) Advance Disaster Loan, please visit, https://covid19relief.sba.gov/#/
Sr. Lenny Candelario
Office of Disaster Assistance, Customer Service Center
U.S. Small Business Administration
(800)659-2955
Contact my office by “replying all” to this email to instruct us to assist you in one or both of these federal assistance programs.
Or to request information from us that you will need to apply yourself.