SBA Disaster Loan Advance Program is Finished
WASHINGTON, D.C. – If you haven’t applied for or received an advance from the U.S. Small Business Administration’s Economic Injury Disaster Loan program, you’re out of luck. On July 12, the SBA announced the end of the program, which provided U.S. small businesses, nonprofits and agricultural businesses a total of $20 billion in emergency funding.
The EIDL advance provided $1,000 per employee up to a maximum of $10,000. Recipients did not have to be approved for a loan to receive the advance, which was intended to be provide emergency funds while EIDL applicants waited to find out if their loan would be approved.
“Following the enactment of COVID-19 emergency legislation, the SBA provided nearly six million small businesses employing 30.5 million people with $20 billion through the unprecedented EIDL Advance program,” said SBA administrator Jovita Carranza. “This program, built from the ground up in less than two weeks, assisted millions of small businesses, including nonprofit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors.”
The SBA allocated the full $20 billion that was appropriated by Congress so it will stop giving EIDL advances to new applicants. Even though the advance is no longer available, the loan portion of the EIDL program continues to have funds available at a 3.75% interest rate for small businesses and 2.75% for nonprofit organizations.