Today on the WJR Business Beat, Jeff reports on the EIDL program.
The U.S. Small Business Administration announced the conclusion of the first component of the program, which provided U.S. small businesses, nonprofits and agricultural businesses immediate grant funding, totaling $20 billion. The distribution of the $20 billion went to nearly 6 million small businesses, employing 30.5 million people.
If you’re a small business in need a funding to survive, there’s still money available under the SBA EIDL lending program.
Tune in to the WJR Business Beat below for more details:
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Good morning, Kevin.
We’ve highlighted previously on the Business Beat two critical federal government emergency funding programs, which have been made available to rescue small businesses suffering from the COVID-19 crisis.
One known as the Paycheck Protection Program, or PPP lending program, and the other known as the Economic Injury Disaster Loan program, or the EIDL program.
Today on the Business Beat, we’re reporting on the EIDL program, which includes two components, both an immediate automatic grant issuance, as well as the opportunity to borrow funding on very favorable terms.
With respect to the EIDL program, the U.S. Small Business Administration has announced the conclusion and the success of the first component of the program, which provided U.S. small businesses, nonprofits and agricultural businesses immediate grant funding, totaling $20 billion.
The companies who applied for the grant component were provided a thousand dollars per employee up to a maximum of $10,000 per business and immediate grant funding.
This was really critical funding needed by businesses, right at the onset of the COVID-19 crisis. In an effort to get this critical funding into the hands of businesses as swiftly and as broadly as possible, the government did not require any preapproval for this part of the program.
That’s really an amazing thing. No red tape, no bureaucracy there. The program was up and running within two weeks of it being announced. The distribution of the $20 billion went to nearly 6 million small businesses, employing 30.5 million people. And while there’ll be no more grant funding issued under the EIDL program, the lending component of the program is still active and available to applicants who are approved.
As a reminder, the loan portion of the EIDL program continues to have funds available at very favorable terms, which include a 3.75 percent interest rate for small businesses and a 2.75 percent interest rate for nonprofit organizations. There’s a 30 year maturity and an automatic deferment of one year before monthly payments begin.
So, if you’re a small business in need a funding to survive, there’s still money available under the SBA EIDL lending program, which you need to get in on now. You can apply at SBA.gov.
I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.
