A program to provide grants to small businesses awaiting a decision on their Economic Injury Disaster Loan (EIDL) applications closed after exhausting $20 billion in emergency funding provided to it by Congress, the U.S. Small Business Administration (SBA) announced Saturday.
The EIDL Advance program provided businesses with $1,000 per employee up to a maximum of $10,000. Recipients did not have to be approved for a loan to receive Advance program funds. The funds went to nearly 6 million small businesses, including not-for-profit organizations, sole proprietors, and independent contractors, among others, the SBA said in a news release.
The SBA will continue to accept applications for EIDL program loans, which offer a 3.75% interest rate for small businesses and 2.75% for not-for-profit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Businesses can apply for EIDL loans on the SBA disaster assistance page.
Organizations that receive a Paycheck Protection Program forgivable loan and an EIDL Advance grant must deduct the EIDL Advance funding from the amount eligible for PPP loan forgiveness.
AICPA experts discuss the latest on the PPP and other small business aid programs during a weekly virtual town hall. The webcasts, which provide CPE credit, are free to AICPA members. Go to the AICPA Town Hall Series webpage for more information and to register.
The AICPA's Paycheck Protection Program Resources page houses resources and tools produced by the AICPA to help address the economic impact of the coronavirus.
For more news and reporting on the coronavirus and how CPAs can handle challenges related to the pandemic, visit the JofA's coronavirus resources page.
— Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor.