SUMMARY: SBA Economic Injury Disaster Loans (“EIDLs”) and $10,000 ADVANCE GRANT
EIDLs are small business loans up to $2 million with interest rates of 3.75% for businesses (2.75% for nonprofits), with principal and interest payments deferred up to 4 years. The loan may be used to pay for expenses that could have been met had the COVID-19 pandemic disaster not occurred, including payroll, rent and other operating expenses.
IMPORTANT: Applicants can receive an EIDL GRANT which is an emergency advance of up to $10,000 for immediate working capital AND in theory it will be given within 3 days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance (see last bullet point in this section). The advance does not need to be repaid under any circumstance, 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 rent payments. A small business may apply for an EIDL grant and a Paycheck Protection loan (the EIDL grant will be subtracted from the forgiven portion of your Paycheck Protection Program loan).
You may apply for a Paycheck Protection Program (PPP) Loan AND for other SBA loans, including this SBA economic injury disaster loans, 7(a) loans, 503 loans, and microloans. However, you may not use funds from each of these programs for the same purposes.
To apply for a COVID-19 SBA Economic Injury Disaster Loan, click here. The NJ Economic Development Authority is procuring technical assistance providers to help New Jersey-based companies apply for grants and loans. The Women’s Business Center of South New Jersey and the Small Business Development Centers of NJ may be able to help you.
IMPORTANT NOTICE FROM NEEDLEMAN MANAGEMENT
Needleman Management presents this information as a service to our tenants, clients, vendors and contractors as an informational resource only. We do not claim to be lawyers, accountants or tax professionals. We present this material for informational purposes only and is based solely as our best understanding at this time. We accept no liability for any action based on this information nor for any errors or omissions. We strongly suggest that you discuss the material provided herein with your legal and tax professionals.
The full 880-page CARES Act document can be found here.
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Last Updated: March 30, 2020