SBA Appears to be Making $2000 Payments on Emergency Disaster Relief Loans
No one knows why the payments are $2000, or some other amount less than $10K. But we are grateful anyway.
April 22, 2020
The US Small Business Administration has begun to make $2000 advance payments on the $10,000 loans we were encouraged to apply for 30 days ago when the Covid-19 lockdowns began. This has been confirmed by several posting people on Reddit, and this author personally received $2000 in the interest of disclosure.
The $10,000 EIDL payments were approved in the third $2.2 trillion package approved by Congress on April 3, 2020. Wall Street received $500 billion, small businesses with employees got the $350 billion "Payroll Protection Program." Meaning "Main Street" could borrow money and keep it if they don't fire employees.
It is unclear whether this $2000 is an advance on the $10,000, or when or if I might receive the other $8000. But I am of course grateful anyway. I'm one of those people who thought small businesses would not be bailed out, and we would stand by again and watch while the big corporations received subsidized government loans as usual. I was wrong, and this time it was different.
Here's the link to apply for the 'EIDL Loan Advance $10K Payment': https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
The confused Reddit posters include the following thoughts, which are no better or worse than mine.
"I received $2000 from SBAD TREAS 310 MISC PAY 041720 EIDLADV:3600. No credit was pulled, money just showed up. I'm thankful for whatever help, but $2K doesn't even make a dent in my payroll. I can probably bring back someone part time with very limited hours until things start to pop," wrote one poster named Nick.
About a week ago I got a $3,000 advance on my EIDL. Today I got an email stating that I would receive a link to a portal. Haven't received that email yet. Does that mean I potentially will be getting a larger loan ? Has anyone else received one of these portal links and how long did it take ?" writes a poster named Mike.
"Possibly. I got hard pull on 04/12. Email to finalize loan this morning via the portal. Handled it all, approved waiting on disbursement. Checked this evening, "Unable to process your application, Declined, We'll email you the reason soon."
It could be a bug - I have no disqualifiers - and I just pulled my credit reports again to triple check. Will hopefully find out tomorrow what's up." writes a Redditer named Mikedvb.
Yes, the portal has your loan amount which is obviously greater than your advance. I believe the current formula is (revenue - cogs)/2. No one knows how long it takes to get the invite."-- writes "HanReder"
"(I'm a) sole prop, applied early April. got notification email for EDIL advance (the basic letter explaining the program) about a week later. no EDIL, no stimulus, no credit pulls. avg/low average credit, filed 2018 taxes." -- Wrote "CoastSTI."