The $2 trillion coronavirus federal stimulus package (CARES Act) contains $350 billion in loans backed by the Small Business Administration (SBA) to help small businesses make it through this economic crisis caused by the coronavirus (COVID-19) pandemic.

Business owners, independent contractors, commercial property owners, and non-profits can now receive a $10,000 emergency cash advance and loans up to $2 million dollars through the Small Business Administration’s Economic Injury Disaster Loan Program. (EIDL)

The SBA’s Economic Injury Disaster Loan program provides loans for working capital of up to $2 million to help small businesses overcome the temporary loss of revenue.  The key is this is a working capital loan program and the funds cannot be used for business expansion, bonuses, and other expenses that are not related to lost revenue from the coronavirus (COVID-19) emergency.

The emergency advance may be used for any regular operational business expenses related to the loss of revenue from the disaster, such as payroll, sick leave, inventory, production costs, rents or mortgages, etc.

Small business owners and private non-profits in all 50 states, The District of Columbia., and all territories are eligible to apply for an Economic Injury Disaster Loan (EIDL) emergency advance of up to $10,000.  The $10,000 grant is a cash advance of loan funds the applicant would receive if approved, through the loan program.

To access the advance, business owners must first apply for an EIDL and then request the advance. The advance DOES NOT have to be repaid under any circumstances. In other words, if the EIDL application is denied, the $10,000 advance will not have to be paid back. Funds from the emergency advance are expected to be made available within days of a successful EIDL application.

EIDLS can be approved by the SBA based solely on an applicant’s credit score (not repayment ability and no tax return is required. EIDLS smaller than $200,000 can be approved without a personal guarantee. They are also not requiring real estate as collateral and will take a general security interest in business property.

The EIDL and emergency advance are only available to businesses that were operational as of January 31, 2020. So no, you can’t start a business today and get the advance. The advance is only available until December 31, 2020.

For those small businesses whose EIDL SBA loan is approved, interest rates are 3.75 % for small businesses and 2.75 % for non-profit organizations.

Unlike standard SBA loans that are funded through banks and backed by the SBA, the money for the EIDL loans arrive directly from the U.S. Treasury.

You can apply online through the SBA website at If you need assistance with an application or have any questions please contact me at 202-873-9211 or