COVID-19 / CARES Act FAQsQuestions and Answers Posted Daily - Last Updated 04/29/20
Economic Injury Disaster Loan (EIDL) (3)
The Economic Injury Disaster Loan program is a type of loan granted by the Small Business Administration. It pre-dated the CARES Act. However, the CARES Act did create a new provision that allows for an “up to” $10,000 advance on an EIDL loan. This is also know as a “grant” since if you are not approved for the EIDL, you do not have to pay back the Advance.
While it was thought at the beginning of the program that the Advance would be $10k, the SBA came out with new guidance that the EIDL Advance would be calculated with this formula: $1,000 x (Number of Employees on January 31, 2020). This would be capped at the $10k. That means if you are a sole propriator, you would recieve $1,000.
The SBA announced a “Lapse in Appropriations” on April 15, 2020 and closed applications on that day. Even though an additional $60 billion was allocated to the EIDL Advance program on April 24, 2020, SBA has yet to open up applications for the EIDL Advances as of this waiting.
On April 24, 2020 a new bill was signed into law that sent more money to the PPP, EIDL, and other causes. Here is the breakdown.
There were $484 billion total issued in this bill:
$321 billion for Paycheck Protection Program
$60 billion for Economic Injury Disaster Relief Advance program
$75 billion for hospitals
$25 billion for testing
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