Who can apply?

This program is for any small business in all 50 states with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19

How much can I get?

Up to $2 million.

BONUS: $10,000 loan advance that does not have to be repaid. You must request this loan advance during application process to be considered for it (check mark the box that YES you want to be considered). The SBA claims you will receive this grant within days of the application filing, whether or not you ultimately qualify for a loan. Although I know many have applied for this loan and grant more than 3 days ago and have not received their advances yet. So…the timeframe as to receiving the grant is still a bit of a mystery.

CAVEAT: This is not a flat $10,000 grant to all applicants. $10,000 is simply the maximum you could possibly receive.

UPDATE AS OF APRIL 14TH, 2020 this is the information the SBA released regarding the grant: “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.”

So, if you had 4 employees as of January 31st, 2020 you will get $4,000. What if I am self-employed and don’t have employees? How will my grant be calculated? That so far is unclear.

What are the terms?

Interest rate: 3.75% for businesses, 2.75% for nonprofits.

Term: Up to 30 years.

Your first payment is not due for one full year (thanks to automatic one-year deferment) but interest starts accruing once you receive the monies.

What can I use the money for?

The grant and loan can be used for many different business costs, including: rent and mortgage payments, salaries, workers' paid leave, and the business's operational needs.

SPOILER ALERT: if you have a combination of loans such as the Coronavirus EIDL as described here PLUS the Paycheck Protection Program Loan:

1.) You must use the money received from each loan for different business needs. As in, use the PPP to cover payroll costs and rent but use the EIDL to help with OTHER financial obligations and operating expenses that could have been met had the disaster not occurred.

2.) The grant given from your EIDL will be subtracted from the forgiven amount of the PPP loan.

What information do I need to complete the application?

It’s a simplified application so you do not need to upload tax returns or personal financial statements. You will need to pull an income statement to type in a few of the numbers though. Some basic info you will need is:

Business EIN (or SSN depending on business structure)
Gross Revenues from January 31st, 2019 to January 31st 2020 & Cost of Goods Sold for the same timeframe (if applicable for your business)
Date business established
Current ownership since
Number of employees as of January 31st, 2020
All Owners/Agents personal information such as SSN, ownership percent, date of birth, place of birth, and residential street address

…among a few other items they ask to be filled in (based on your business type)

Overall thoughts?

Considering the ease of applying, the low interest rate and the initial advance that does not have to be repaid, it seems like a pretty great deal. The downside…it’s unknown when you would receive the money, could be days or weeks. But hey, it’s an option!

Think it over and if it’s a good fit for your business, you can get right to the application here: https://covid19relief.sba.gov/#/

We want to hear from you! What do you think? What would you like to read about next? Let us know below!

COVID-19 Disaster Loan Assistance - How can it help my business?