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COVID-19: SBA Offers Economic Injury Disaster (EIDL) Grants To EIDL Applicants

COVID-19: SBA Offers Economic Injury Disaster (EIDL) Grants To EIDL Applicants

Sticky
Apr 01, 2020
0

In connection with the SBA’s EIDL Program, a borrower applying for an EIDL loan can request an advance on the loan of up to $10,000 to be used for authorized costs (such as paid sick leave, payroll, rent and increased supply chain costs).

The SBA is required to distribute the advance proceeds within three days of receipt of the request which would be submitted by a borrower in connection with and upon completion of its EIDL loan application, including a certification that the borrower is eligible to apply for an EIDL. It is currently unclear how the SBA will determine how much of the $10,000 maximum amount will be provided to an applicant.

The advance of up to $10,000 is considered by the SBA to be a grant. In other words, a borrower will not be required to repay the grant, EVEN IF the borrower’s application for an EIDL loan is denied. However, the amount of the advance must be deducted from any loan forgiveness amounts if the applicant later receives a Paycheck Protection Program Loan.

The SBA’s on-line application portal can be accessed at https://covid19relief.sba.gov/#/

If you would like more guidance, please contact your Brown Moskowitz & Kallen, P.C. attorney at (973) 376-0909 via the office extensions below or the mobile telephone numbers provided.

Stuart Brown
Office Extension: 1118
Mobile: (908) 770-0166

Kenneth Moskowitz
Office Extension: 1112
Mobile: (908) 770-0160

Norman Kallen
Office Extension: 1114
Mobile: (908) 770-0165

Steven Rowland
Office Extension: 1124
Mobile: (973) 879-0544

Keith Marlowe
Office Extension: 1120
Mobile: (973) 568-7559

Richard West
Office Extension: 1126
Mobile: (973) 229-7928

Frederic Tudor
Office Extension: 1122
Mobile: (973) 476-8139

Michael Greenberg
Office Extension: 1119
Mobile: (917) 716-9302

Kristina Brown
Office Extension: 1116
Mobile: (908) 239-7625

Michele-Lee Shapiro
Office Extension: 1130
Mobile: (201) 221-6814

Emilio Lamanna
Office Extension: 1129
Mobile: (516) 554-2460

This article is for informational purposes only and is not intended to constitute, and does not constitute, legal advice.

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