Small businesses that still need a quick buck to help them get through the coronavirus pandemic can no longer rely on the Small Business Administration’s loan advance program.
The coveted program, which provided immediate help to businesses that applied for an emergency loan from the SBA, is officially strapped for cash, the agency said over the weekend. The SBA says it has provided $ 20 billion in advance funds – the total amount allocated by Congress – to nearly six million businesses employing 30.5 million people. The money was distributed in the form of advances of $ 1,000 per employee, up to $ 10,000 per company.
The advances were initially approved in March under the CARES Act and were distributed through the SBA’s existing system. Economic disaster loans, or EIDL program, through which businesses and nonprofits can apply for low-interest loans. The EIDL program is still open and accepts applications, but the advances, much sought after because they are non-refundable, are no longer part of the deal.
Amid overwhelming demand during the early days of the COVID-19 outbreak, chaos and confusion Initially plagued by the EIDL program, with many small businesses and sole proprietorships claiming they were unable to find lenders or even contact the SBA for advice. Presumably, a good number of frustrated business owners have simply given up.