Covid-19 SBA Loans – EMAIL BLAST 3/30/2020 AM

If you would like to borrow using the SBA Economic Injury Disaster (EIDL) loan, then you should apply for it now as the Federal funds available to provide for these loans are not unlimited. The EIDL loan is not the loan that has loan forgiveness provisions in it as provided for in the CARES Act. The loan having loan forgiveness provisions is the Paycheck Protection Program (PPP) loan. The PPP loan will be applied for through your bank (assuming your bank is an SBA lender which most are). The SBA is now working on its administrative procedures and will be directing their lenders (the banks) on the application process. At this time we understand the SBA will be providing these procedures to their lender banks by this Friday. The banks will then be getting their application procedures shored up and in place to accept the PPP loan applications. Our estimate of the timeframe for submitting PPP applications will probably be on or after April 6.

The EIDL is accessible through the SBA website which was recently updated to allow the online application process. If you get an EIDL and then also apply for a PPP loan, you can roll your EIDL loan amount into the PPP loan as a loan consolidation at that time.

The EIDL loan is also the loan with a potential of $10K grant provision, so anyone wanting access to that potential grant must apply for the EIDL.

The Dental CPA’s team