The SBA has imposed new size limitations on advances available under the Economic Injury Disaster Loans (“EIDL”), restricting the amount available to eligible borrowers. Citing the lack of appropriations for the EIDL program coupled with a large volume of applications, the SBA will now only be making initial loan disbursements for two months of working capital, up to a maximum of $15,000 per applicant. It is not clear whether additional funds will be made available under the EIDL after this initial disbursement. This is in addition to the non-refundable advance of $10,000 per applicant, so applicants may be eligible for up to $25,000. However, there are also additional caveats on the $10,000 non-refundable advance. The SBA has implemented a $1,000 cap per employee on the advance, up to a maximum of $10,000. For example, a business with 4 employees may request an advance of up to $4,000.
The SBA has not yet released a statement on its website updating the program or eligible amounts. This information is based solely on the experience of other applicants and as reported by the New York Times on April 9, 2020.
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