*UPDATE: Additional funding has been made available, but the EIDL is only processing previous applications that didn't receive a response, and is not accepting new applications at this time. Check out our blog on the
PPP to see if that is a fit for your business.
* Hey all you cool cats and kittens! Like many of you, we've tuned out the chaos by occasionally binge watching the latest show, but when we aren't cuddled up on the sofa, we're digging into the CARES Act. In our last blog, we dove down the
Paycheck Protection Program rabbit hole and found that Wonderland is amazing for many, but not the right fit for Scholar Raise. Instead, we applied for the
Economic Injury Disaster Loan (EIDL) for small businesses.
In many ways the EIDL advance is similar to the PPP loan, so we wanted to better understand the details before clicking the submit button. Here's what we've learned: The Small Business Association (SBA) has always offered Economic Disaster Loans (also known as Economic Injury Disaster Loans or EIDL). These are loans that have low interest rates, 30 year repayments (kinda like a mortgage) and have a max you can request of $2M. Because it's a loan, it can take some time to receive the money requested. So, in this specific "emergency" situation, the SBA is offering an advance on the loan so that people can get money faster. But in order to receive this advance, you still have to apply for the loan... since technically it is an advance on the EIDL. Consider this a stop gap until people receive their loan in full.
Since this program is currently on hold "due to appropriations," there's no need to rush your application. Intead, we thought it helpful to break down the basics of the EIDL and the EIDL advance in a side-by-side comparison, so that you are ready to move quickly should/when more funding becomes available.
We submitted our application before the SBA announced they were no longer accepting applications. However, due to a glitch in the matrix, it was not received. Alas, we will make sure to post any updates on funding, learnings from going through the process or answers to questions.
*Please keep in mind this information is changing rapidly and is based on our current understanding of the programs. It can and likely will change, so please do not solely rely on this for your financial decisions. We encourage you to consult with your lawyers, CPAs, and Financial Advisors.
Want to learn more? Here are some resources:
Keep safe, stay informed, and contact your representatives for more funding.
Wes & Ashley
