The SBA is once again accepting applications for ag, non-ag businesses, and certain non-profits, as of June 15th for the Economic Injury Disaster Loans (EIDL). The program designed to help businesses through the COVID-19 pandemic had only allowed agricultural businesses to apply over the last 6 weeks.
This left some out in the cold.
Early on as the EIDL emerged, Ag businesses were not certain they would qualify and eagerly awaited a solution. Some took the chance and applied but many waited, not wanting to waste their energy. Congress has fully addressed their need with additional funding. Since May 4th, the program has been open exclusively to agribusinesses and farmers, but has now been re-opened to all eligible small businesses.
One of the main attractions to apply is the initial cash advance. Applicants can request an advance of $1,000 per employee up to a maximum of $10,000. Per the SBA’s direct words, “This advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan.”
This means that individual contractors, freelancers or side businesses can still submit an application and may receive the $1,000 without the need for advancing with a loan.
So the biggest lesson is when in doubt, apply!
Already entered your EIDL application?
Millions of applications remain in their queue but the SBA assures applicants who have already submitted their applications that they will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
If you have not applied, we can help!
Whether you need current business financials or someone to navigate the process with you, our experts have been there. Contact us today for assistance.