This week, FEMA and the SBA re-opened the application process for the Economic Injury & Disaster Relief Loan (EIDL) program.
EIDL has two components:
- A grant (or “advance”) of $1,000 per employee up to $10,000 per business. This is completely forgiven the moment it is deposited into your account and can be used for operating cash flow. However, this grant WILL REDUCE your PPP forgiveness by the amount of the advance. You cannot “double dip” and receive free money twice.
- A loan of up to $150,000 per business with a 30 year term at 3.75% interest. The first year’s payments are deferred. This too can be used for operating capital to help sustain your business.
The EIDL loan and advance process is rather easy with no formal underwriting required. Click here to apply.
Congress appropriated $60 billion as part of the CARES act to this program. Applications are being accepted on a first-come-first-serve basis. However, given the amount of money available and the size of the loans, this seems like it may last for a while. If you’re interested, apply now – do not wait. It will likely take a few weeks before you hear back from them as the system will be overloaded with applications.
Please let us know if there is anything we can do to help you with this process.