SBA EIDL Updates


On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

                                 Paycheck Protection Program                  Full EIDL Loan

PURPOSEForgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable)To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven)
TERMSUp to $10 million1% interest rateUp to $2 million3.75% for businesses2.75% for non-profits
MATURITY2 years30 years
FIRST PAYMENT DUEDeferred 6 monthsDeferred 1 year

To locate a Paycheck Protection Program Lender, please visit:

Information on available resources may be found at For more information on these services, please go to to locate the email address and phone number for the nearest SBA district office and/or SBA’s resource partners.

Small Business Help – EIDL and PPP

There are two programs for small business owners, the EIDL loan/grant and the PPP (payment protection plan) loan. Both offer assistance for small businesses. Information is coming out rapidly and the details do seem to be changing slightly as it comes out.

EIDL – Economic Injury Disaster Loan

This loan is taken out directly from the SBA and this is one of the better summaries I have found:

You can also apply for it here:

EIDL mainly required businesses to have less than 500 employee and the corona virus has qualified the location for all 50 states. In addition to employer (corporations) it also includes:

  • Sole Proprietors
  • Independent Contractors
  • and Self Employed people

Approval conditions:

  • Borrow up to $200k without personal guarantee
  • 1st year tax return not required, can borrow based on credit score
  • Do not have to prove you cannot get loans elsewhere
  • $25k or less loans require no collateral
  • Must allow SBA to review tax records

The biggest benefit was the $10k advance that would be a grant and should arrive within days of filling out application. Unfortunately, at this time, it appears that the SBA has been overwhelmed and they are running slow getting them out.

Further, I have found there appears to be some changes coming about based on this story of limiting the 10k to 1k per employee with 10k as the max.

PPP Loans – Paycheck Protection Program

Here is the Fact Sheet from the US Treasury covering the PPP Loans–Fact-Sheet.pdf

Highlights, 1% fixed rate loans for small businesses. All Loan terms are the same for everyone.

Loan amounts can be forgiven for:

  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
  • Employee and compensation levels are maintained.
  • Payroll capped at $100k for each employee.

The funds are run through SBA Lenders (your typical banks and credit unions usually). The tricky part is that it appears the banks are only helping their current customers.

If you think either program may apply or help you. Please contact me and we can review your situation.

** The information on this website is intended only for informational purposes.  Reh Wealth Advisor clients should discuss with their advisor if any action is appropriate.

Cares Act

Congress has passed the Cares Act. (link below to full text)

  There are many items that could affect you and I will be crafting a longer analysis of items that may impact you and those you know.  Here are some highlights:

1) Individuals making under $75k AGI in 2019 will received $1,200 payment, married couples under $150k will receive $2,400.  An additional $500 for each qualified child.

2) Elimination of 10% early withdrawal penalty for distributions from retirement accounts related to the Corona Virus.  Can be repaid back into the retirement accounts over 3 years.  Income tax may be spread over 3 years as well.

3) It appears all RMD’s from retirement and beneficiary IRA’s have been suspended.  It also appears you can give back distributions taken already this.  I will be confirming these details.

4) Unemployment increased $600 over normal state unemployment.  Benefits available without waiting the normal 1 week period.

5) Additional benefits for small businesses such as loans at maximum 4% interest, potential tax credit, and potential deferring of payroll taxes.

For those looking for additional reading, the best resource I have found so far is here:

Kitces’s intended target market is investment advisors so his articles tend to be technical in nature.

Please do not hesitate reaching out to me with any questions and please do not act without discussing it with a financial advisor.


Steve Reh