Q. What is the Economic Injury Disaster Loan Emergency Advance?
A. Per the Small Business Administration (SBA), in response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.
Q. How much of the $10k advance will I receive?
A. Per an update from the SBA, “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.”
Q. Is it true that I won’t have to pay the advance back?
A. That is correct. The $10k advance is essentially a grant and does not have to be paid back.
Q. Does applying for this advance prohibit me for applying for a Payroll Protection Program (PPP) loan?
A. No. You can apply for and receive both.
Q. Are the funds going to run out before I have time to apply?
A. The first $10 Billion for the EIDL Grant seems to have been exhausted. However, Congress recently authorized an additional $10 Billion.
Q. Where can I found more information on the Economic Injury Disaster Loan Emergency Advance?
A. The Small Business Administration has more information available here.
Q. Where can I go to apply for the Emergency Advance?
A. You can apply right here. Be sure to have your business gross receipts and cost of good sold (if applicable) for period February 2019 – January 2020. You will also need direct deposit information.