Business Advisory Services Group
The U.S. Small Business Administration (SBA) announced that it has closed the program that provided grants to small businesses awaiting a decision on their Economic Injury Disaster Loan (EIDL) applications. The grant program closed after exhausting $20 billion in emergency funding provided to it by Congress.
The EIDL Advance Program provided businesses with $1,000 per employee up to a maximum of $10,000. Recipients did not have to be approved for a loan to receive Advance program funds. The funds went to approximately 6 million small businesses, including not-for-profit organizations, sole proprietors, and independent contractors.
The SBA will continue to accept applications for EIDL program loans, which offer a 3.75% interest rate for small businesses and 2.75% for not-for-profit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Businesses can apply for EIDL loans on the SBA disaster assistance page.
Organizations that receive Paycheck Protection Program forgivable loans and EIDL loans must deduct the EIDL grant from the amount eligible for PPP loan forgiveness.
The information presented here should not be construed as legal, tax, accounting, or valuation advice. No one should act on such information without appropriate professional advice and after a thorough examination of the particular situation.