Hi again everyone,
We know this past month has been a worrisome and frustrating time for our country, especially for small businesses. We've been trying to keep you informed of the SBA's programs,and truthfully, we feel the same frustration with the many changes. We do understand that the current crisis is uncharted territory and the people at the SBA are doing their best to administer the programs set up by Congress to help small businesses.
That being said, we want to alert you to another change in the Economic Injury Disaster Loan program. We learned on Friday that the loan amount on the EIDL is being capped at $15,000 across the board. Even if you were already approved for a higher amount, the cap will apply.
Additionally, the advances for the EIDL program are up to $10,000; the amount is determined by number of employees. For each employee, up to 10 people, $1,000 will be advanced. The good news is the advance is in addition to the amount of the loan rather than be deducted from the capped amount.
Here are the details of the EIDL at a glance:
To keep business in business
- Small business with fewer than 500 employees, non profits are eligible
- Maximum loan amount is up to $15,000
- Interest rate - 3.75% (2.75% NFP), up to 30 years
- Apply at https://covid19relief.sba.gov/#/
- Allowed uses - Fixed expenses such as Rent, payroll, Accounts Payable an other bills that could have been paid if the disaster not occurred
- Up to $10,000 advance, $1,000 per employee
- No prepayment penalties
- Deferred payment up to 12 months
Remember, the SBDC is here to help; we have counselors and consultants that can advise on cash flow issues, marketing strategy and more. Please reach out to us for assistance!