The SBA reopened the Economic Injury Disaster Loans (EIDL) and Advance Program. Additionally, the SBA implemented revisions for the Paycheck Protection Program (PPP) to reflect changes made in the PPP Flexibility Act of 2020. The EIDL program portal has been reopened to all eligible applicants experiencing economic impacts due to COVID-19.
SBA's EIDL program offers long-term, low-interest assistance for small businesses and nonprofit organizations. These loans can provide vital economic support to help alleviate temporary loss of revenue. EIDL assistance can be used to cover payroll and inventory, pay debts, or fund other expenses.
EIDL Advance will provide up to $10,000 or $1,000 per employee of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid. To learn more and apply, readers may visit http://www.sba.gov/disaster.
Changes have also been made for PPP funding. The revisions have resulted in a more borrower-friendly loan forgiveness application for businesses that have already received PPP funding.
In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers who are self-employed and have no employees, did not reduce the salaries or wages of their employees by more than 25% and did not reduce the number of hours of their employees, or experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%.
To view and download the EZ Forgiveness Application and Full Forgiveness Application, readers may visit http://www.sba.gov/funding-programs and click on the link for "Coronavirus (COVID-19): Relief Options and Additional Resources" at the top of the page.
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