SBA Communicates New Guidance on EIDL Advance
April 16, 2020
The U.S. Small Business Administration (SBA) has recently communicated to applicants of the Economic Injury Disaster Loan (EIDL) regarding the $10,000 forgivable Advance. In their communication, they state that to ensure the greatest number of applicants can receive assistance, the amount of the Advance will be determined by the number of pre-disaster employees and that the Advance will provide $1,000 per employee up to $10,000.
This is new guidance that the SBA had not previously disclosed. They had previously communicated that businesses could receive a $10,000 advance potentially within three days of applying for an EIDL. Unfortunately, this new guidance may limit the Advance amount that some businesses may receive.
The SBA communication also reminds applicants of their potential eligibility for the Paycheck Protection Program. If your business has been negatively impacted by COVID-19, we encourage you to consider reviewing this relief program if you have not already done so. For additional information on COVID-19 financial relief efforts for businesses, please click here.
1% interest rate
3.75% for businesses
2.75% for non-profits
Yes – EIDL Advance