Small businesses can receive a $10,000 grant within 3 days from the Small Business Administration just for applying for an SBA economic injury disaster loans (EIDL).
The $10,000 advance does not need to be repaid under any circumstance and may be used to keep employees on the payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions or pay business obligations, including debts, rent, and mortgage payments.
The SBA has streamlined the application process into a simple online form.
U.S. Senator Brian Schatz’s (D-HI) office outlines how to qualify for the SBA $10,000 grant and SBA Economic Injury Disaster Loan (EIDL):
In addition to the entities that are already eligible for SBA disaster loans (small businesses, private non-profits, and small agriculture cooperatives), eligibility is temporarily expanded to include:
Business entities with 500 or fewer employees:
Sole proprietorships, with or without employees
Cooperatives and employee-owned businesses
Tribal small businesses
Private non-profits of any size.
Additionally, you must have been in business as of January 31, 2020.
Expanded eligibility criteria and the emergency grants are only available between January 31, 2020, and December 31, 2020.
When you apply, you can request an emergency grant of $10,000.
The SBA will provide the grant within 3 days of receiving your application.
You will not have to repay the grant, even if your application for a loan is denied.
You can visit an SBA resource partner who can help guide you through the loan application process. You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center here.
If you apply for an EIDL and the grant, you can still apply for a Paycheck Protection loan.
However, the amount forgiven under a Paycheck Protection loan will be decreased by the $10,000 grant.