On Friday, the U.S. Small Business Administration announced the conclusion and success of the Economic Injury Disaster Loan (EIDL) Advance program, which provided U.S. small businesses, nonprofits and agricultural businesses a total of $20 billion in emergency funding. In order to assist the greatest number of small businesses, the EIDL Advance provided $1,000 per employee up to a maximum of $10,000.
A press release said, “Recipients did not have to be approved for a loan to receive the advance, and the advance provided an interim, but vital source of funds while applicants awaited a decision on their loan application.”
“Following the enactment of COVID-19 emergency legislation, the SBA provided nearly 6 million small businesses employing 30.5 million people with $20 billion through the unprecedented EIDL Advance program,” Administrator Jovita Carranza said. “This program, built from the ground up in less than two weeks, assisted millions of small businesses, including nonprofit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors.”
Having allocated the full $20 billion that was appropriated by Congress, SBA will discontinue making EIDL Advances to new applicants. By law, the SBA is not permitted to issue new EIDL Advances once all program funding has been obligated.
EIDL loan applications will still be processed even though the advance is no longer available. As a reminder, the loan portion of the EIDL program continues to have funds available at what the press release called “very affordable terms, including a 3.75% interest rate for small businesses and 2.75% for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Every eligible small business and nonprofit is encouraged to apply to get the resources they need.”