You’ve probably been hearing that the SBA is offering an advance of up to $10,000 as part of their new application process for the Economic Injury Disaster Loan (EIDL). Because this advance is being tacked onto an already-existing loan, there is a little confusion around how it works. Let’s break down the EIDL Grant and how it can help your RV business.
What is the EIDL grant?
An additional $10 billion was allotted through the CARES Act to pay SBA EIDL applicants an advance on their loans. Normally, it can take a while for the SBA to process EIDL loan applications — usually around 90 days and can as long as several months! Because this is such a critical time for small businesses, the EIDL grant advance aims to help you get a portion of your loan now when you need it most
How much money will I get?
Some people think that every applicant will receive a flat $10,000. This is not the case. Applicants can receive up to $10,000, but the amount of your advance depends on your specific situation and business.
Some applicants who’ve already received the grant got $1,000 per employee (up to the $10,000 limit). There are various guesses as to how your amount gets calculated, but this question is best directed to your SBA-approved lender.
How to get the grant
The EIDL grant is not included in the normal Economic Injury Disaster Loan by default and must be officially requested. The good news is, they make it really easy on you:
Step 1: Fill out a current SBA disaster loan application
Step 2: Check the box saying you’d like to be considered for an up to $10,000 grant advance
Step 3: Fill in your direct deposit information
If you filled out the old application (without the option for opting into the grant), then you’ll need to reapply using the new system. But don’t worry — if you do this, you won’t lose your initial place in the queue and the second application will just serve as a request for the grant.
When will I get the grant?
According to the SBA, you’ll receive the grant “within days” of completing your application, though that has not been the case for most due to high demand on a very new process. There is still a bit of unpredictability around the SBA’s processing times so we don’t really know how long it will take the SBA to process these requests and deposit the funds.
Note: Remember that this is a completely unprecedented process, so there are bound to be a few bugs to work out.
Do I have to pay it back?
Because the advance was written into law as a grant, you won’t need to pay back the money you’re given (and you also won’t be charged interest!). While the advance won’t require repayment, you should remember that the advance amount will be subtracted from your loan total and that the final EIDL loan will need to be repaid.
Is the grant given to everyone who applies?
If you are eligible for the SBA EIDL, then you are eligible for the grant. However, we don’t have the power to give a 100% “yes” answer, so it’s best to consult your lender to find out your eligibility.
Please also keep in mind that the funds assigned to this program are separate from the funds allocated to the Disaster Loans and they are not unlimited. Once the SBA has depleted the grant budget, you may not get the advance unless the government decides to release more funding.
This grant is a great way to get some money in your hand really quickly. For more information on the application process, head to the EIDL Grant’s official page on the SBA website.
Note: This article is accurate as of publishing on 4/15. We will keep updating as new information is released.