SBA's $10,000 Disaster Loans Come with New Caveats

Posted By American Med Spa Association, Thursday, April 9, 2020

High demand for Economic Injury Disaster Loans (EIDL) has led to important changes limiting the size of the payouts for some small-business owners.
While small-business owners across America line up to get their Paycheck Protection Program (PPP) loans—a process that has been a bit chaotic—the Treasury Department has touted the EIDL as a stopgap option. Small businesses that apply for EIDLs can request an advance of up to $10,000.
Now, there are some caveats. The U.S. Small Business Administration's Massachusetts District Office announced in a bulletin on April 6 that, nationwide, the SBA has decided to implement a $1,000 cap per employee on the advance, up to a maximum of $10,000. So, a business with three employees, for example, would be eligible to receive only $3,000 up front, as opposed to the originally stated $10,000.
Read more at Inc. >>