Congratulations! You just finished applying for a Paycheck Protection Program (PPP) loan. Your application is off doing what applications do best, in the hands of professionals determined to get your business the help it needs. So take a moment to breathe and relax while we walk you through everything that comes next.
When Will You Get Your Money?
After applying, the biggest question on everyone’s mind is, “When will I get my money?” Last we heard, the SBA plans to review and approve applications tied to CARES Act relief in 2–3 weeks after submission. However, when it specifically comes to the PPP, there still isn’t much in the way of official information available from the SBA or US Treasury. We know these loans are intended as a lifeline, so we can assume it’ll be quicker than other SBA funding, but the government has yet to even release the funds to lenders.
It’s all a bit of a new and exciting mystery, but you can rest assured knowing we’ll update our information and let you know the moment the government releases any helpful details. In the meantime, if you need some fast capital, we may have another solution.
Is an EEIG Right For My Business?
Similar to the PPP, an Emergency Economic Injury Grant (EEIG) is part of the CARES Act and is designed to help small businesses find quick capital to keep their doors open and employees paid. This grant can provide businesses with as much as $10,000 in a matter of days after the SBA receives and approves your application.
How Do I Get an EEIG?
An Emergency Economic Injury Grant is probably the easiest bit of money your business can get from the government. However, to score that much-needed money, you need to apply for an Economic Injury Disaster Loan (EIDL). Fortunately, due to the coronavirus (COVID-19) pandemic, the application process is a piece of cake. While you’re filling out the application, you’ll see a box on page 4 next to the words, “I would like to be considered for an advance of up to $10,000.” Just click the box, and you’ll be set up to receive your EEIG. It’s seriously that easy.
So What’s an EIDL?
An Economic Injury Disaster Loan (EIDL) is a traditional SBA loan designed to help small businesses that suffer during a disaster. It used to have a pretty rigid application process, but COVID-19 and the CARES Act streamlined the whole thing. Now, you simply need some standard business information and proof you’ve been impacted by the coronavirus to get the help you need. This aid is intended to help cover day-to-day operating expenses like:
- Accounts payable
- Providing paid sick leave to employees
- Matching inflated costs to obtain materials
- Rent and mortgage payments
- Other obligatory payments that can’t be met due to revenue loss
While these intended uses are similar to those in the Paycheck Protection Program, there are some rules surrounding usage if you apply for both.
Can You Apply for both an EIDL and a PPP loan?
The simplest answer is yes, but you need to be mindful of how you use that money. Since there’s only a set amount of CARES Act money to go around, the government wants to make sure everyone has the chance to access it. That’s why they’ve made it so you can’t double up on usage. If you get a PPP loan and an EIDL, you can’t use them for identical things at the same time. So if you plan ahead and make sure you divvy up those funds into non-overlapping uses, you shouldn’t have any problems.