Our best information at this point, which included a 2+ hour conference call tonight, indicates you should apply for the SBA EIDL loan if you haven’t already. Our previous advice was to wait until we had correct information because it could preclude you from other relief provisions, or to apply but do not accept the loan if offered, for the same reason.
As things clear up we’re recommending applying for this loan for 2 main reasons.
- This is the loan that will advance you, within 3 days, $10K if you are a qualified applicant (damaged by the COVID crisis=qualified). This advance does not require you to accept further loan proceeds under this provision. You don’t even have to be approved for the loan to receive it.
- It potentially can be rolled into the PPP (Paycheck Protection Program aka 7a) loan, which is going to be the preferred loan program which will allow a forgivable portion up to 100%.
Bottom line-we don’t see a downside to submitting the application and receiving the $10K advance with the added benefit of starting the process in case you decide you do want these funds later. We would still recommend waiting for final advice before closing on EIDL loan. This loan must be applied for via the SBA website. https://disasterloan.sba.gov/apply-for-disaster-loan/index.html