The U.S. Small Business Administration announced the conclusion and success of the Economic Injury Disaster Loan (EIDL) Advance program last week, which provided U.S. small businesses, non-profits and agricultural businesses a total of $20 billion in emergency funding.
In order to assist the greatest number of small businesses, the EIDL Advance provided $1,000 per employee up to a maximum of $10,000. Recipients did not have to be approved for a loan to receive the Advance, and the Advance provided an interim but vital source of funds while applicants awaited a decision on their loan application.
“Following the enactment of COVID-19 emergency legislation, the SBA provided nearly six million small businesses employing 30.5 million people with $20 billion through the unprecedented EIDL Advance program,” Administrator Jovita Carranza said. “This program, built from the ground up in less than two weeks, assisted millions of small businesses, including non-profit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors.”
Having allocated the full $20 billion that was appropriated by Congress, SBA will discontinue making EIDL Advances to new applicants. By law, the SBA is not permitted to issue new EIDL Advances once all program funding has been obligated.
EIDL loan applications will still be processed even though the Advance is no longer available. As a reminder, the loan portion of the EIDL program continues to have funds available at very affordable terms, including a 3.75% interest rate for small businesses and 2.75% for non-profit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Every eligible small business and non-profit is encouraged to apply to get the resources they need.
Arneshia Holloway
July 23, 2020 at 1:13 pm
Not everyone got a dime from the SBA ! I Was one of one’s and i was told DECLINED!! without a explanation and i have been waiting and Waiting and once I get through i was told you don’t get nothing? But when this first came about it was said NO MATTER WHAT YOUR CREDIT IS IT DIDN’T MATTER? Self employed and in business about 7 yrs (nothing)
It hurts me to my heart to hear that all the millionaire got money and some of us NOTHING!!
Mandel Coulter
July 24, 2020 at 10:43 am
This article is BS. The cares act was inteded for a 10000 advance with a 2 million cap for business. The sba made tgiere own rules then dropped the ball on even that. Months it took for businesses to recieve the grant if they even got one and for some for way leas than they needed to run their business. Many businesses suffered because of the SBAs in compentencies. A total fail….