SBA Ends Economic Disaster Advance Program
Funds for the EIDL Advance program, which made emergency payments of up to $10,000, have been exhausted, though loans are still available.
Announcing an end to its Economic Injury Disaster Loan (EIDL) Advance program, the Small Business Administration said it provided 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. While EIDL applications will still be processed, as of Saturday the advance was no longer available as SBA has allocated the $20 billion appropriated by Congress.
“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,” Jovita Carranza, SBA administrator, said Saturday in a statement. “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 reminds small businesses and nonprofits, however, that 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, with a 30-year maturity and an automatic deferment of one year before monthly payments begin.
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