What is the EIDL Program
The Small Business Administration (SBA) is bringing back the Economic Injury Disaster Loan (EIDL) program to help stabilize small businesses. The EIDL program is a grant and loan program that funds small businesses during macroeconomic disasters. Many small businesses and essential businesses are dealing with economic struggles due to the ongoing COVID-19 crisis.
On June 15th, 2020, it was announced that the EIDL program would open up again with grants of $1,000 to independent contractors, freelancers, and gig workers. Small businesses and agricultural businesses are eligible for the grant as well. The grant allows $1,000 for every employee that can go up to $10,000 for the business. Beyond the emergency grant which is up to $10,000, the SBA offers favorable terms on loans ranging from $150,000 or $2 million.
Who is Eligible
The following businesses are eligible for grants according to Forbes: independent contractors, freelancers, sole proprietorships, gig workers, small businesses with less than 500 employees, and agricultural businesses.
The timeframe of taking advantage of this opportunity is that the business must be active as of January 31, 2020. Also, the grants are available until December 16th, 2020. The timeframe is not guaranteed as the money may run out expeditiously. So, it would wise for small businesses to apply before the cutoff date.
Where Can I Apply
The application for financial aid from the SBA can be found on this website. This is a great contingency plan for small businesses to take advantage of in spite of the current pandemic.
It is not required to pay the grant back. There is no requirement to apply for a loan beyond the grant. However, the loan has flexible terms due to the fact that the loan is repayable for up to 30 years. Like the small businesses that are keeping local communities intact, this program is essential.
If you want to follow up on the application, The SBA has these resources for further contact. The phone number for the SBA Disaster Assistance Customer Service Center is 800-659-2955. Also, their email is email@example.com.