UPDATE – Emergency Grant For Small Businesses
On April 6, 2020, I posted a blog discussing Emergency EIDL Grants to small businesses, which can be found here. This more recent post serves to provide an update.
On March 27, 2020, President Trump signed into the law the CARES Act. The Act authorizes the Small Business Administration (“SBA”) to provide Emergency EIDL Grants to small business of up to $10,000 by simply applying for an Economic Injury Disaster Loan.
Despite Congress’s intent to provide small businesses with a quick infusion of cash, the EIDL Grant program has run into significant problems including a shortage of funds and an overwhelming throng of applicants. In a recent letter, 15 congressional lawmakers, comprised of members of both parties, derided the SBA’s failure to award the grants in a manner consistent with congressional intent.
Of concern to small businesses is the SBA’s metering of EIDL Grants to $1,000 per employee. As a result, sole proprietors, independent contractors, and small businesses with fewer than 10 employees may receive significantly less than they expected. This metering, in combination with untimely funding, has left the EIDL Grant program with much to be desired.
The lawyers at Beresford Booth are ready to answer you questions regarding the EIDL Grants and to assist in reviewing eligibility for other programs, including the Small Business Emergency Grant, the Payroll Protection Program, and other programs designed to provide relief in these unusual times.