EIDL Program Grants Financial Flexibility

Written by Tyler Williams

On June 18, 2020

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 disastercustomerservice@sba.gov.

You May Also Like…

6 Small Business Loan Types for Business Owners

6 Small Business Loan Types for Business Owners

As a small business owner, you may have a dream of your enterprise growing into a large corporation or a publicly listed company. However, expanding a company needs more capital to pay additional expenses such as new employees' salaries and other operating expenses....

read more
Episode 23 with Patrick Janelle

Episode 23 with Patrick Janelle

On episode 23, we are introducing Patrick Janelle. Patrick Janelle started his career as a graphic designer at Bon Appetit, and has then branched off to start his own business ventures. He has also become one of the most influential lifestyle influencers on Instagram,...

read more

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Subscribe To The Celeri Journal

Subscribe To The Celeri Journal

Our daily newsletter offers views on the global economy through the context of a small business owner, or student, looking to make sense of an ever-changing macro environment.

You have Successfully Subscribed!