EIDL Update with the Ensured Increased Disaster Loans (EIDL) for Small Businesses Act S.4227
If you applied for the EIDL Loan and received the EIDL Advance Grant of $1,000 per employee I have some great news for you in this EIDL Update video. U.S. Senator Jacky Rosen (D-NV) and Senator John Cornyn (R-TX) have come together to introduce bipartisan legislation that would provide additional funding to the EIDL. As stated on Rosen’s website;
As of last week, the EIDL Advance grant program has run out of funding and small businesses are no longer receiving this relief.
In April, Senator Rosen co-lead a letter along with Senator Cornyn urging the SBA to eliminate its self-imposed caps on EIDL loans and EIDL Advance grants.
Senator Rosen directly brought these concerns to SBA Administrator Carranza and Treasury Secretary Mnuchin during a Small Business Committee conference call earlier this year, and on June 10th, Senator Rosen publicly questioned the SBA Administrator and Treasury Secretary on the SBA’s limits on EIDL and EIDL Advance.
The bipartisan Ensuring Increased Disaster Loans (EIDL) for Small Businesses Act (S.4227) would:
• Provide $100 billion in appropriations for EIDL;
• Provide $80 billion in appropriations for EIDL Advance;
• Prohibit the U.S. Small Business Administration (SBA) Administrator from placing maximum caps below $2 million on Economic Injury Disaster Loans, which have a maximum loan amount of $2 million, as established by the CARES Act. Under the bill, all eligible small businesses shall receive EIDL funding in the amount calculated using SBA’s current EIDL formula, up to $2 million;
• Prohibit the SBA Administrator from placing limitations on the Economic Injury Disaster Loan Advance. Under the bill, all eligible small business shall receive the full $10,000 grant provided by the CARES Act, regardless of size;
• Require EIDL Advance grants to be disbursed to eligible small businesses within three business days of request and not be contingent upon approval for a Economic Injury Disaster Loan; and
• Require SBA to submit a monthly report to the House and Senate Committees on Small Business and Appropriations on 1) the status of the Disaster Loan Account, including obligations, allocations, and amounts undistributed/unallocated; 2) allocations, obligations, and expenditures for all open disasters; and 3) an estimate of when available appropriations will be exhausted.
So if you haven’t yet, be sure to check out the EIDL Course here and the PPP course here now that you have the latest EIDL update. You can also visit the SBA website for additional relevant news here.