Reapplying for Small Business EIDL Loans Under the CARES Act
The new $484 billion aid package approved by Congress includes $60 billion to renew funding for the Economic Injury Disaster Loans (EIDL) program and adds $320 billion to the Paycheck Protection Program (PPP). Those who were caught in the middle of the loan application process when funding ran dry need to know the following: If you were in the process of applying for a EIDL loan and have an application number that begins with the No. 3, you do not need to reapply for a loan. The Small Business Administration reports it is continuing to process applications that were in the pipeline when funding ran out, and will reopen its application portal and accept new applications once it receives new appropriations. Small businesses seeking an EIDL loan that have an application number that begins with No. 2 should reapply once the application portal reopens. They will not lose their place in line because SBA can match up the new application with the date/time stamp of the original application submitted. Businesses applying for an EIDL may request an advance of up to $10,000 to be delivered quickly following the request. An applicant will not be required to repay this advance if the funds are used to cover payroll, provide sick leave or cover other business costs, even if the applicant is subsequently denied a loan under the EIDL program. The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30 a.m. EDT. More information on the PPP and EIDL loan programs can be found here. For more information, contact Alex Strong at 1-800-368-5242 x8279 or Heather Voorman at x8425.