July 26th, 2020 | Updated on June 28th, 2022
The EIDL Advance Program has run out of money. The $20 billion programs would give entrepreneurs a $10,000 fast cash advance when they apply for the Economic Injury Disaster Loan Advance loan.
It was intended to give businesses instant relief while they were waiting for their loan to be approved. However, with the continual shutdowns, flare-ups, and tight re-opening restrictions, a lot of the employment.
The EIDL Advance program will give small-business owners a $10,00 quick cash grant when they apply for an EIDL loan.
This is a grant that they get to keep even if they are unsuccessful in their application for an EIDL loan which can give them up to $150,000 in funding.
“We are facing an uncertain future. We do not know how long it will take to eradicate coronavirus and return to normal.
People and businesses who lost their income during the pandemic need help to survive. Now more than ever, politicians must work together to create a corona aid relief bill to ease the financial suffering of their people,” according to Brad Nakase, who is one of the best car lawyer in California and awarded the prestigious “American Institute of Trial Lawyer’s 2020 Litigator of the Year.”
The entrepreneur should receive quick cash within three days in theory. In practice, though, people found that there were often delays of up to several weeks, missing the point of “fast cash”.
Also, the Small Business Association decided to cap the grant at $1,000 per employee, meaning small businesses miss out on much-needed funding.
So far, the EIDL Advance program has given grants to nearly 6 million businesses.
Dwindling Options For Small Businesses
There are a few options available for small businesses needing financial aid. However, most of these were set up at the start of the coronavirus pandemic and have not accounted for the ongoing struggles that businesses face.
The PPP loans, another key component of the CARES Act, offers low-interest loans for small businesses.
It is designed to keep as many employees in a job as possible, so if the loan goes towards payroll costs, then the loan will be forgivable.
However, the National Federation of Independent Businesses has released data that shows that more than half of the PPP loan recipients have exhausted their loan funding.
The remaining 44% who have not yet exhausted their funding are only weeks away from exhausting the money.
At the moment, businesses who have received a PPP loan in the first round of funding cannot apply for the second round.
If you have not received a PPP loan, then you have until the 8th of August to apply for a loan in the second round.
Almost half of the businesses that have received some form of financial aid under the CARES Act believe that they will need additional financial aid to remain in business in the next 12 months.
That number is guaranteed to rise with more shutdowns, restrictions, and coronavirus flare-ups.