SBA EIDL $10,000 Cash Advance or Not?
Last night, the SBA sent an email to businesses that applied for the Economic Injury Disaster Loan (EIDL) and the $10,000 cash advance. According to the CARES Act, the advance was intended to provide businesses with a rapid infusion of $10,000 cash to be used to help keep businesses afloat during the disruption. The Act promised a 3-day turnaround from completion of the streamlined application to a direct deposit of $10,000 for those that qualified, but this turned into waiting and silence by the SBA. Now, the SBA sent applicants an email stating the cash advance will only be allowed for businesses with employees. Those qualified businesses under their rule will only receive $1,000 per employee up to a maximum of $10,000. It remains to be seen if Congress or the Administration will force changes to the SBA’s position.
To locate a Paycheck Protection Program Lender, please visit www.SBA.gov/PaycheckProtection.
Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA’s resource partners.