SBA Emergency Economic Injury Disaster Loan (EIDL) Grants
The Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily expands eligibility for SBA economic injury disaster loans (EIDL) and provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID- 19 within 3 days of applying for an SBA Economic Injury Disaster Loan (EIDL). This provision of the CARES Act includes $10 billion in funding and is limited to the first one million applicants. To access the advance, you first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent, and mortgage payments
In addition to the entities that are already eligible for SBA disaster loans (small businesses, private non-profits, and small agriculture cooperatives), eligibility is temporarily expanded to include:
- Business entities with 500 or fewer employees:
- Sole proprietorships, with or without employees
- Independent contractors
- Cooperatives and employee owned businesses
- Tribal small businesses
- Private non-profits of any size.
Additionally, you must have been in business as of January 31, 2020. Expanded eligibility criteria and the emergency grants are only available between January 31, 2020 and December 31, 2020.
- Emergency Grants of not more than $10,000 will be distributed by the SBA within three days of applying.
- Grantees are not required to repay the grant, even if subsequently denied for an EIDL loan.
- If you apply for an EIDL and the grant, you can still apply for a Paycheck Protection loan. However the amount forgiven under a Paycheck Protection loan will be decreased by the$10,000 grant
Additional information on how to apply for an Emergency Grant is available at SBA.gov.