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SBA reopens Economic Injury Disaster Loan, EIDL emergency grants to all eligible applicants

Also available: $120B in forgivable PPP loans plus $15B for Medicaid providers

June 17, 2020 22610

“All eligible applicants experiencing economic impacts due to COVID-19” can now apply for the Economic Injury Disaster Loan and EIDL advance grant, the Small Business Administration announced June 15.

“All eligible applicants experiencing economic impacts due to COVID-19” can now apply for the Economic Injury Disaster Loan and EIDL advance grant, the Small Business Administration announced in a June 15 press release. 

Established in March by the federal CARES Act, the EIDL program provides long-term, low-interest loans ― and emergency grants of up to $10,000 ― to small businesses and nonprofit organizations that are experiencing a temporary loss of revenue as a result of economic disruption caused by the current public health emergency.

Beginning early May, the SBA restricted the loans and emergency grants to agricultural businesses only, as those businesses were not eligible to apply for the first round of EIDL funding. As of June 15, the program is again open to all qualified small businesses and nonprofits, which include dental practices.

The EIDL program terms and details include:

  • No application deadline. However, funding for the $10,000 emergency grant is limited and available on a first-come, first-served basis.
  • Loan amounts of up to $200,000 approved without a personal guarantee.
  • Open to businesses with fewer than 500 employees plus sole proprietors, independent contractors and private nonprofits.
  • Terms: 3.75% interest rate (2.75% for nonprofits), up to 30-year repayment and first payment deferred for one year.
  • Borrowers can request that the first $10K of the loan be issued as an emergency advance, which is required to be disbursed within three days and does not need to be repaid. 

The loan money can be used to pay payroll, debts, accounts payable, rent, mortgage or other bills that the business owner cannot pay due to the public health emergency’s impact.

Businesses may receive an emergency advance even if they are not approved for a loan.

Small business owners can apply for an EIDL and request the EIDL advance and find additional guidance for small businesses on the SBA website.

PPP loan funds still available, borrowers can use simplified loan forgiveness application 

The CARES Act also established the Paycheck Protection Program to provide financial relief to small businesses through loans that are forgivable as long as borrowers spend the loan money on qualifying expenses. 

More than $120 billion of the program’s total funding was still available as of June 12.

Borrowers are required to apply for PPP loan forgiveness and can use the revised and simplified Paycheck Protection Program loan forgiveness application released by the U.S. Treasury Department today to comply with the Paycheck Protection Program Flexibility Act of 2020. 

Two versions of the new application are available:

Borrowers can use the EZ version of the form if they meet one of three specific criteria. Dentists can learn more about the PPP or find a lender through the SBA’s website.

$15B in targeted relief for Medicaid providers

Medi-Cal Dental providers may be eligible to receive financial relief from the Department of Health and Human Services’ Provider Relief Fund. HHS will distribute approximately $15 billion to “close to one million” providers who participate in state Medicaid programs and have not yet received a payment from the Provider Relief Fund General Allocation established by the CARES Act.

Providers must apply by the July 20 deadline and will need to report their annual patient revenue through the HHS’ Enhanced Provider Relief Fund Payment Portal.

Related articles:
Flexibilities added to Paycheck Protection Program to assist small businesses
CDA provides clarification on the Small Business Administration’s EIDL and PPP loan