ARTICLE
Another important aspect of the CARES Act for small businesses is that it amends the SBA’s Economic Injury Disaster Loans (EIDLs). In early March, the SBA’s disaster loan program was extended to all small businesses affected by COVID-19, but the CARES Act opens this program up further and makes it easier to apply. These changes include: EIDL are now also available to Tribal businesses, cooperatives, and ESOPs with fewer than 500 employees. They are also available to all non-profit organizations, including 501(c)(6)s, and to individuals operating as sole proprietors or independent contractors. EIDL can be approved by the SBA based solely on an applicant’s credit score. EIDL that are smaller than $200,000 can be approved without a personal guarantee. Borrowers can receive a $10,000 emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue losses. For more information, please visit the SBA’s website at www.sba.gov