July 14, 2020—On Saturday, the Small Business Administration announced the conclusion of the Economic Injury Disaster Loan (EIDL) Advance program, which provided small businesses and non-profits a total of $20 billion in emergency funding.
According to an SBA press release, the EIDL Advance provided $1,000 per employee up to a maximum of $10,000 at the outset of the COVID-19 pandemic. Recipients did not have to be approved for a loan to receive the advance, and the advance provided an interim source of funds while applicants awaited a decision on their loan application.
Having allocated the full $20 billion that was appropriated by Congress, the Small Business Administration will discontinue making EIDL advances to new applicants. By law, the SBA said it is not permitted to issue new EIDL advances once all program funding has been obligated.
EIDL loan applications will still be processed even though the advance is no longer available. To learn more about SBA's available disaster assistance, click here.
