What happened?
Back in March, Congress passed the CARES Act, which added funding for a number of important initiatives such as the launch of the Paycheck Protection Program. One initiative was the creation of emergency grants through the EIDL program. The Act provided $10 billion for the Small Business Administration (SBA) to disburse, with the intention of quickly providing up to $10,000 to eligible businesses to cover working capital needs while the SBA processed their EIDL loan application.
The program was closed in mid-April after the SBA saw record demand. In late April, an additional $10 billion was added by Congress, bringing the program to $20 billion in funds and allowing the SBA to open applications to agricultural producers.
On June 15, the SBA opened its application portal back up, allowing all eligible small businesses to apply for the EIDL and EIDL advance grant.
On July 11, the SBA announced that funding for the EIDL advance had run out and the program was closed. In all, over 5 million businesses received a disbursement.
What’s next?
The EIDL loan itself is not closed. The SBA continues to accept and process EIDL loan applications. The EIDL program for the COVID-19 disaster is not scheduled to end until mid-December 2020.
If your business could use funding to keep your business afloat, the EIDL is the best loan option out there. We suggest considering these important questions to see if the loan is suitable for you, as well as the Paycheck Protection Program and its forgivable qualities. If you’re ready to apply for the EIDL, here’s our step-by-step walkthrough.
I applied for the grant before it closed but didn’t get it. Am I out of luck?
If you’re sure you checked the box to be considered for a grant, you may still be in luck. The SBA’s press release says they’ll “discontinue making EIDL Advances to new applicants”, so it’s possible that they may be able to work through their backlog of existing requests. However, be sure to check your bank account for any EIDL advance deposits that may have been quietly disbursed without you knowing, as the SBA doesn’t send notifications for the advance.
If you didn’t check the box, unfortunately you’re likely out of luck. When we contacted the SBA last week, we learned that they may offer remaining funds to those with approved loans, but we feel the chances are slim.
Will the grant be back?
Only if Congress passes legislation providing additional funding to the advance program. Lawmakers are expected to pass an additional stimulus package by early August, which may restart the program.
