CARES ACT BENEFITS FOR SMALL BUSINESS
CARES ACT – Economic Injury Disaster Loans (EIDL)
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million to help overcome the temporary loss of revenue and is available for reasons other than paying payroll costs.
Small businesses, sole proprietors, Employee Stock Option Plans, and independent contractors are eligible to apply for Economic Injury Disaster Loans. Any loan made under this program before December 31, 2020 will not require a personal guarantee on loans below $200,000.
Economic Injury Disaster Loans (EIDL) $10,000 Emergency Grant
Allows a business that has applied for an EIDL disaster loan to get an immediate advance of the loan of up to $10,000, that must be disbursed to the business within 3 days.
The advance can be used to maintain payroll, and is not required to be repaid, even if the borrower’s request for a EIDL 7(b) loan is denied. The advance can be forgiven if it’s spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or rent payments, or repaying obligations that cannot be met due to revenue losses.