Would an extra $10,000 make it easier to run your business right now? If so, then take a look at the government’s Economic Injury Disaster Loan (EIDL) Advance program. It’s structured as an advance against a loan and functions as a cash grant.
To receive the funds, apply at the Small Business Administration’s web site.
The loan itself is a 10 year loan at 3.75% interest, and it is being rolled into the Payroll Protection Program. The EIDL loan has to be repaid. The EILD grant does not have to be paid back as long as the money is spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue loss. Payroll Protection Program loans are also forgiven as long as the primary use of the money is covering payroll for workers, whether they are working or staying in reserve.
Who’s Eligible for These Small Business Grants
The list is inclusive. You have to have been in business before February 15, 2020. Beyond that, eligible organizations include:
- Small businesses with fewer than 500 employees, including single physical locations of food service and accommodation businesses
- A nonprofit organization under IRS sections 501(c), (d), or (e) with fewer than 500 employees
- Individuals operating as sole proprietors, independent contractors, or other self-employed trades or businesses
- Tribal businesses, cooperatives, and Employee Stock Ownership Plans.
In general, you need to report revenue and expenses for twelve months ending January 31, 2020 and demonstrate either positive cash flow, a credit score, or collateral. If you’re interested, the next step is to contact the financial institution you work with for your other business financing needs.