Economic Injury and Disaster Loan Applications Open for Qualifying Small Businesses
Updated: Apr 6, 2020
In response to the continuing spread of COVID-19, also known as Coronavirus, on March 27th the United States Congress passed the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Under the Act, the Small Business Association ("SBA") is offering an advance of up to $10,000 to small businesses applying for an SBA Economic Injury Disaster Loan ("EIDL"). To access an Emergency Economic Injury Grant ("EEIG"), businesses must first apply for an EIDL, then request the EEIG as an advance. The EEIG may be approved within three days of applying for an EIDL and does not need to be repaid under any circumstances.
To be eligible for an EDIL and subsequently an EEIG:
the business must be a small business with 500 or less employees, or if not, a qualifying "small business" under SBA standards found here;
the business must be able to make certain disclosures about its and its members'/operators' business activities and their criminal records, if any; and
the business must have been in operation since January 31, 2020 and must have operating expenses dating prior to January 31, 2020.
The SBA has stated that while hemp and hemp-derived product businesses are eligible for assistance, marijuana-related businesses are not. If you believe you qualify for an EIDL and EEIG, it is recommended that you apply for assistance. Applications can be found here. More information can be found here. Businesses can apply for EIDLs and EEIGs through December 31, 2020.
Raffi Garnighian is a published author and Colorado and New York licensed attorney at Wysocki Law Group, P.C. Kieran Edstrom is a third-year law student at the University of Denver Sturm College of Law and a law clerk for Wysocki Law Group, P.C.
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