Apr 04 FAQ & ANSWERS: APPLYING FOR THE $10,000 EMERGENCY ECONOMIC INJURY GRANT
Emergency Economic Injury Grants provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 after applying for an Economic Injury Disaster Loan (EIDL) from the Small Business Administration (SBA). An EIDL can provide up to $2 million of financial assistance (actual loan amounts are based on amount of economic injury) to small businesses or private, non-profit organizations that are suffering from economic loss directly or indirectly related to COVID-19.
The SBA has put in place a streamlined on-line loan application process for businesses to take advantage of the $10,000 advancement of EIDL loan proceeds.
The advance does not need to be repaid and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
FAQs & Answers: Emergency Economic Injury Grants
Q: Who is eligible for an Emergency Economic Injury Grant?
A: Entities that are eligible for an EIDL and who have been in operation since January 31, 2020 when the crisis was announced.
Q: How do I apply for the grant?
A: The SBA EIDL loan application process is streamlined on-line here and only requires information for 12 months of sales and cost of goods sold for the twelve month period ending January 31, 2020 in order to be eligible for the grant.
Q: How long are Emergency Economic Injury Grants available?
A: The grants have been backdated to January 31, 2020 to December 31, 2020 to allow those who have already applied for EIDLs to be eligible to also receive a grant.
Q: If I get an EIDL and/or an Emergency Economic Injury Grant, can I get a Paycheck Protection Program (PPP) loan as well?
A: Yes, you may apply for a PPP loan even if you already applied for or received an EIDL unrelated to COVID-19 or receive a COVID-19 related EIDL and/or Emergency Grant between January 31, 2020 and June 30, 2020. If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance amount received under the Emergency Economic Injury Grant Program would be subtracted from the amount forgiven in the PPP.
You cannot use your EIDL for the same purpose as your PPP loan. As an example, if you use your EIDL to cover payroll for certain workers in April, you cannot use PPP for payroll for those same workers in April. However, you could use it for payroll in March or for different workers in April.