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SBA Economic Injury Disaster Advance Loan - Basically a free grant of $10,000. for Disaster Aid for Small Businesses

Fuse

Fuse

Well-known member
Joined
May 2019
Messages
65
Small business owners may apply for an Economic Injury Disaster Advance Loan, and can receive an Advance in the amount of $10,000. which doesn't have to be repaid. "This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid."

Details here:
www.sba.gov

Coronavirus (COVID-19)

SBA Disaster Assistance in Response to the Coronavirus
www.sba.gov

Application here:
SBA - Disaster Loan Assistance
 
Fuse,
Thanks for this link! My brother in law is a small business owner who has 3 employees (automotive repair shop) and he has been out of commission due to a health issue (non Covid 19 related) and needs some help to pay rent, utlities and payroll as they are deemed an essential business and are open.

~Ken
 
Change in terms: EIDL Advance now based on # of employee's and now pays only $1000. per employee.

----- Forwarded Message -----
From: Small Business Administration <news@updates.sba.gov>
Sent: Tuesday, April 14, 2020, 08:47:00 AM CDT
Subject: Update on Economic Injury Disaster Loan Advance
Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.
 
That's only for the advance to help you get some quick money to keep up with some payroll and completely separate from the PPP loans which are for 2.5x monthly payroll. You can still apply for and possibly receive more through the EIDL for other expenses, but it will take time since it is treated like the standard sba (7)a loan. The whole thing is a huge mess though and my guess is by the time it's all said and done the big "small businesses" with hundreds of employees and on staff accountants will suck up the money quick while the little guys are still trying to figure out what's going on.
 
Good Luck guys- I know this must be trying time for all of the businesses in the firework trade.

What pisses me off- We had a guy purchase a business in town about 2 years ago, he thought the name would make him money-it didn't. The building was about to fall down BEFORE he bought it. He closed before christmas because of the Lack of business and costs of surviving the Michigan winter. Had a sign-seeya next year. This business and giving this man anything is like throwing money down the toilet. He will take it, it will never reopen, and take money from businesses that really could use it.

Enough of that rant-- again good luck with the upcoming season.
 
Most of the stimulus money is already gone. My brother-in-law owns an auto repair shop with 3 employees. First, he couldn't get through the website for information and sedcondly, it seems the stimulus money was sucked up by the bigger small businesses, as Tim mentioned.
 
Just got word that 1 small pyro company got the full $10k EIDL Advance yesterday, 4/20/2020.
 
FYI - Texas Pyro's, but should be true in other states(will have different minimum payments)
Any unemployed person 18 years and older can file and receive Texas Unemployment's lowest level of unemployment benefits without any tax or employment records required. That minimum level is $207./week from Texas and $600/week Federal Covid bonus for a combined weekly benefit of $807./week. ANY adult unemployed person(legal US resident) can file and receive benefits. plus, your start date can be back dated to Mar. 1st, so you get months of benefits in an initial lump sum. Benefits will run for 26 weeks. The extra $600./week Federal Benefit is payable from April 4 - July 30. Your Texas Benefit portion may be increased by sending in your 2019 Federal Income Tax records, but this is optional.

Detail:
 
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