Immediately after COVID began to hit here in the US in earnest, the SBA released an unprecedented rounds of funding including the PPP programs, along with other disaster relief options.
But now that these programs have run their course, the other options available include the long-standing SBA EIDL (Economic Injury Disaster Loan) program.
The program is incredibly easy and can result in the transfer of $150,000 into your bank account in a matter of days. Of course there are very specific rules about how this money can be used, but if you’re careful about the use of those funds…and in particular if you use them to actually keep your business functioning..the funds can be your lifeline.
While interest accrues from the moment the loan is funded, no payments are due during the first 12 months. The devil is in the details…but the details are very clear and specific…use the money for legitimate ongoing business purposes (as opposed to doing things like paying off debt) and the loan purpose is permissible. But other HUGE qualifications apply…as an example, an SBA EIDL loan may have disqualified you for the more desirable PPP funding source.
And…defaults on any federal loan programs are immediate and long-term disqualifications for other government programs….so think and act wisely.