On April 14, the U.S. Small Business Administration (SBA) provided an update on its Economic Injury Disaster Loans (EIDL), which were approved through the passage of the CARES Act. When the Act was passed, many believed that small business owners would receive a $10,000 advance shortly after applying for a loan. In this morning's update, however, the SBA informed small business owners that the advance amount will be calculated based on an applicant's number of employees. Specifically, the advance will provide $1,000 per employee up to $10,000 total.
"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."
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