• SBA Changes EIDL Rules

    Our members that have applied for the $10,000 EIDL emergency advance and haven't seen the funds deposited are receiving this communication from the SBA: 


    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.

    You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

                                     Paycheck Protection Program                  Full EIDL Loan

    PURPOSE

    Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable)

    To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven)

    TERMS

    Up to $10 million

    1% interest rate

    Up to $2 million

    3.75% for businesses

    2.75% for non-profits

    FORGIVABLE

    YES

    NO – EIDL Loan

    YES – EIDL Advance

    MATURITY

    2 years

    30 years

    FIRST PAYMENT DUE

    Deferred 6 months

    Deferred 1 year

     

    To locate a Paycheck Protection Program Lender, please visit: www.SBA.gov/PaycheckProtection.

    Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA's resource partners.