Our attorneys are closely monitoring and advising small business and franchise clients on the “Coronavirus Aid, Relief and Economic Security Act” or the “CARES Act” signed into law on March 27, 2020. Please review our article “Cares Act: What Small Business and Franchise Owners Need to Know” discussing the CARES Act and how it can benefit small businesses and franchise owners.
SBA is Now Accepting Applications for EIDL Grants from Eligible Entities
The Small Business Administration (SBA) is now taking applications for the Economic Injury Disaster Loan (EIDL) for emergency capital up to $10,000. The link to the Application for EIDL grants up to $10,000 is included at the bottom of this article. Emergency grants from the SBA included included as part of the CARES Act of 2020 provide for immediate grants within 3 days of submitting the application for up to $10,000 for eligible entities.
The eligible entities include:
- Small businesses
- Sole proprietors
- Private non-profits
- Independent contractors
- Cooperatives
- ESOPs and
- Tribal units, all with under 500 employees that apply for loans in response to the COVID-19.
Upon verification, the SBA, through lending institutions, will provide grants up to $10,000. The applying business must have been in business for at least a year, which may be waived, but certainly before January 31, 2020.
CARES Act EIDL Grants
Small businesses and franchise owners can apply for a grant up to $10,000 today with no collateral or personal guarantees required. The funds may be used for paid sick leave for employees unable to work due to Coronavirus (“COVID-19”), maintaining payroll, business expenses, making rent or paying mortgage on owned property, and repaying obligations that cannot be met due to revenue losses.
Applying is a Simple Process
We have gone through the application process which, if you are a small business or sole proprietorship, should not take you more than 10-15 minutes. The information you might not readily have on hand but that will be needed to complete the EIDL application includes:
- The company’s Federal Employee Identification Number
- The amount your business earned in revenue for the 12 months prior to January 31, 2020
- The personal address and Social Security Number of each owner/member
- The bank account information (account number and routing)
Repayment Not Required
The applicant is not required to repay any of the amounts advanced even if subsequently denied a loan under the SBA’s CARES Act Loan Program. If you receive the EIDL grant and you are ultimately approved for a loan under the CARES Act Disaster Loan Program, the money advanced through EIDL shall be reduced from any other loan forgiveness amount.
CLICK HERE: APPLICATION FOR THE SBA’S EIDL GRANT
About Wasch Raines LLP
Wasch Raines LLP is a franchise and business law firm providing a comprehensive range of services to emerging and established businesses and franchise companies in a variety of industries. Through its unique business model, the firm offers its clients the benefits of having a cost-efficient in-house general counsel and a full service litigation team.
Wasch Raines LLP has has provided this article for general informational purposes only. It is not intended as professional counsel and should not be used as such. You should contact your attorney to obtain advice with respect to any particular issue or problem.
