EIDL Loan Advance Update

Pamela C. Lundborg and Jeffrey B. Scheer, Bond, Schoeneck & King

Business and Transactions

Small businesses that applied for loans and advances under the Economic Injury Disaster Loan (EIDL), originally reported in our March 30 memo, which includes a $10,000 advance that does not have to be repaid, have been receiving new information from the Small Business Administration. The response states: “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.”

This is very new information and has not been in any of the SBA official guidance yet. We will continue to provide updates as more information becomes available.