CARES Act – COVID-19 Emergency EIDL Grant Program

• What the Program Offers:
  • Grant of up to $10,000.
  • An applicant for an EIDL may ask the SBA for an advance of up to $10,000 within 3 days after the SBA receives the loan application.
• What the Grant Must Be Used For:
  • Providing paid sick leave to employees unable to work due to the direct effect of COVID-19;
  • Maintaining payroll to retain employees during business disruptions or substantial slowdowns;
  • Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains;
  • Making rent or mortgage payments; and
  • Repaying obligations that cannot be met due to revenue losses.

An EIDL applicant will not be required to repay the Emergency EIDL Grant even if subsequently denied an EIDL loan. If an applicant receives an Emergency EIDL Grant and is approved for a PPP Loan, the amount of the Emergency EIDL Grant will be reduced from the loan forgiveness amount for the payroll costs of the PPP Loan.

For more information, contact:

Ramsay M. Whitworth rwhitworth@silvermanthompson.com
Mark Edelson medelson@silvermanthompson.com
Steve Leitess sleitess@silvermanthompson.com
Ilona Shparaga ishparaga@silvermanthompson.com
Michael J. Levin mlevin@silvermanthompson.com