The CARES Act was signed into law Friday, and businesses in every state and territory are now eligible to apply for Economic Injury Disaster Loans. (If you applied before the declaration was made, you may have been rejected
because SBA Disaster Loan Assistance was unavailable for Coronavirus related economic impact at the time.)
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is an estimated $2 trillion package, which specifically allots $10 Billion for EIDLs and $350 billion for Paycheck Protection Loans.
A $10,000 cash grant advance will be available to small businesses that will be handed out on a first-come-first-serve basis. *The grant is through the Small Business Administration and will be forgiven if the amount is used for payroll, paid leave, mortgage or lease payments, increased costs due to supply chain disruption, or repaying obligations that cannot be met due to revenue loss. (*See SBA requirements to qualify for loan forgiveness)
The COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION FORM is very streamlined and straightforward and requires only basic information about your entity, gross revenues, COGS, and similar information.
The SBA will also be offering many favorable terms in their EIDLs:
â€¢ Loans are up to $2M
â€¢ The term is 30 years
â€¢ Interest Rates are 3.75% for small business and (2.75% for non-profits)
â€¢ The first monthâ€™s payments are deferred a full year from the date of the promissory note.