While the Paycheck Protection Program (PPP) was newly created by the CARES Act, Economic Injury Disaster Loans have been offered by the Small Business Administration for years, traditionally to businesses in regions that have been impacted by a natural disaster. The CARES Act, passed in March as the first major stimulus bill in response to the coronavirus crisis, added funding for the Emergency Advance feature of the program, which is meant to quickly provide up to $10,000 to all businesses who apply.
Because this program is new to most freelancers, we’ve answered the most common questions about EIDL, what it does, and how it can help you right now.
How much money can I get?
There are two parts to the EIDL program: the loan, which is currently capped at $15,000, and the Emergency Advance, which is calculated at $1,000 per employee with a maximum of $10,000. For freelancers, that means the maximum advance you can receive is $1,000. The advance does not need to be repaid — even if you are ultimately denied an EIDL loan for credit reasons — and can be considered a grant.
What are the requirements to qualify?
The program is open to businesses (including sole proprietors and independent contractors)