A $10,000 Gift to Small Businesses

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All small businesses and the self-employed suffering from the pandemic should apply for this forgivable SBA Economic Injury Disaster Loan (EIDL).  Amongst the frenzy and chaos of applying for the Payroll Protection Plan most small business owners have overlooked it. You can apply for up to $2 Million, but the forgivable amount is $10,000. The application process is way simpler and best, of all, you may well qualify for both this and the PPP.  


In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.


The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic. 

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by COVID-19.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid. 

The Benefits of the EIDL vs. PPP

 Economic Injury Disaster Loan (EIDL)Paycheck Protection Program (PPP Section 7(a)
AdministratorSBASBA Approved Financial Institutions
Amount of LoanUp to $2 millionLesser of $10 million or 2.5 times average monthly payroll costs (not including independent contractor payments) incurred during calendar year 2019
 Calculations for seasonal and new business can vary
Interest RateFor- Profit 3.75% | Non-Profit 2.75%1%
Term/ MaturityUp to 30 years2 years
Deferral12 months (interest accrues during deferment)6 months (interest accrues during deferment)
PrepaymentPrepayment is eligiblePrepayment is eligible
Eligibility*Small businesses in all U.S. States and territories, including sole proprietors or independent contractorsSmall businesses in all U.S. States and territories, including sole proprietors, independent contractors and eligible self-employed individuals
 Internationally owned organizations located in the U.S.Internationally owned organizations located in the U.S.
 Private nonprofit organizations501 (c)(3) nonprofit organizations
Small agricultural cooperatives501 (c)(19) veterans organizations
 Tribal small business concernsTribal small business concerns
 ESOPsFewer than 500 employees in most instances, more in certain industries*
 Fewer than 500 employees*
UsageFixed Debts, payroll and related benefits**, accounts payable and other expenses that cannot be paid because of the disaster’s impactPayroll and related benefits** Interest on mortgage payments or other debts, rents and utilities
Cannot be used forRefinancing of debt, payment of other SBA loans or lenders, tax penalties, civil fines, repairs of property or other physical damage, pay dividends or distributions to owners or partnersLimited to uses noted above
 (EIDL may be eligible to be refinanced into a PPP loan)
CollateralIf available, collateral will be taken on loans greater than $25,000No collateral from business or its owners
Loan forgiveness and grant eligibilityEmergency grant up to $10,000Eligibility is based on specific requirements
(EIDL may be eligible to be refinanced into a PPP loan)Forgiveness*** available on a portion of the loan proceeds if employers retain employees during specified period
 Forgiveness of non-payroll allowable expenses is limited to 25% of total forgiveness
GuaranteesWaives requirement of personal guarantees on loans less than $200kNone
Can I Apply Now?Application process and loans are available nowApplication process and loans are available now

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WellAcre Global Wealth Advisors is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where WellAcre Global Wealth Advisors and its representatives are properly licensed or exempt from licensure.  This website is solely for informational purposes.  Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by WellAcre Global Wealth Advisors unless a client service agreement is in place.