The SBA was already accepting applications for the Economic Injury Disaster Loan before the CARES Act was passed and signed into law. The maximum amount was $2 million.
The CARES Act revised the EIDL to make the application process quicker. In addition, the law gave businesses the ability to request and receive a 10k emergency grant within 3 days regardless if the applicant was approved or denied. The application was officially updated on 3/29
A week has pass, and no one,including those who applied before 3/29, have been awarded any funds. When small business owners call the SBA, they will receive different answers from the representatives. Some say the grant will be $10,000 disburse this week while others will say the grant is based on the number of employee that will be awarded in 2-3 weeks.
As of right now, the changes the SBA has made or trying to make are:
-Not releasing the emergency grant within 3 days of application. It can take up to 3 weeks to receive the emergency grant and loan
-Changing the maximum loan from $2 million to $25,000 ($15k loan and up to $10k grant)
-Basing the grant on the number of employees ($1000 per employee/ $10,000 max) The law state business get $10,000. There was no employee requirement in the CARES ACT or the application I filled out on 3/31
Not even the Democratic senators are on the same page. While Senator Schumer, Coons, and Cardin, along with Sanders (VT-I), wrote an open letter to the SBA Administrator, Jovita Carranza, demanding the $10,000 grant be disburse to businesses within 3 days, Senator Brian Schatz admits although it is the law, he stated the SBA added guidelines to grant to be based on the number of employees that will take some time to be release.
The few people to get approved for EIDL applied before the CARES Act was passed and were initially approved for loans over $100,000 then later capped to $25,000 ($15k loan and up to $10k grant)
Only people aware of these changes are the business owners paying close attention to the SBA and collaborating with other businesses with the information we have received from the SBA and elected officials. Small business Administration has not notify most applicants of the major provisions.
Thanks for reading
www.facebook.com/groups/navsbahub (private group about sba loans)
Twitter keywords “eidl” “#EIDLHOAX”
You’re going to get the exact same response from every single business about the EIDL:
We applied and expected to receive the $10k EIDL grant within 3 days. That time has passed. We have tried contacting the SBA. The SBA reps have given a variety of answers to people. Some have said the EIDL grant was based on number of employees and not everyone will receive $10k, others have said that it would take weeks to get the money to us. And other reps have contradicted those statements. We’ve tried getting in touch with members of Congress. Even tried tweeting at people involved. All to no avail. We are completely in the dark. We’ve heard exactly nothing official from anyone. No one is talking about this in the media. No reporter is asking the President or SBA what is going on with the EIDL payments.
In the meantime, our businesses are in trouble. We’re being told we cannot open, but we still need to pay our bills. We want to pay our employees. We have no idea if we’re going to be able to do so. For many businesses, this is not a matter of days or weeks or months. Many of us are worried about tomorrow.
Disclaimer: This is a guest post and it doesn’t represent the views of IWB