Updated Information on April 6, 2020: Over the last few days it appears the SBA is now adjusting the $10k advance payment for enterprises with fewer than 10 employees to $1,000 per employee. Enterprises with 10-500 employees are eligible to receive the $10k advance payment.


SBA Economic Injury Disaster Loans (EIDL)

Nearly $350 billion to help US-based Small Businesses is included in Phase 3 of the stimulus plan, the Coronavirus Aid, Relief, and Economic Security, or CARES Act that passed in late March. In addition to the Paycheck Protection Program, or PPP, loans which start April 3, 2020, there’s another SBA loan created by the CARES Act: it’s called EIDL, Economic Injury Disaster Loans.

EIDLs provide a $10k advance payment within a few days. For qualifying businesses the $10k advance is granted, even if you don’t get approved for the loan. A streamlined application is now available on the Small Business Administration website.


“EIDLs provide a $10k advance payment within a few days of the application being submitted. For qualifying businesses the $10k advance is granted, even if you don’t get approved for the loan.”


Things to know about EIDL

  1. These loans are for Small Businesses negatively impacted by Coronavirus
  2. There are two types of disaster relief SBA loans, the PPP loans, and EIDL. This list is about EIDL
  3. Qualified businesses – US-based Small Businesses with not more than 500 employees, sole proprietors, and independent contractors. Been in operation since January 30, 2020
  4. Maximum Amount – Up to $2M
  5. Low Interest – 3.75% for most small businesses; 2.75% for non-profit organizations
  6. Term – Up to 30 years for repayment
  7. Deferrals – Repayment can be deferred up to 4 years
  8. Personal Guarantee – A personal guarantee is required for loans greater than $200,000
  9. Repayment — The $10k advance does not need to be repaid; however, unlike PPP loan, EIDLs are NOT forgivable
  10. Early Repayment – There is NO penalty for early repayment
  11. Application Process – There’s a 3-step process; Select “Economic Injury” as the loan type; You will need tax returns and other financial documents to complete the application.
  12. What Funds Can Be Used For – Broader than PPP loans, EIDL funds can be used for various working capital needs, such as payment of fixed debts, employee sick leave, as well as payroll, that cannot be paid due to Coronavirus.
  13. Payroll Conditions – None at this time
  14. Taxable Impact – It is currently unclear if the $10k advance will be taxed as income.
  15. Can Businesses Apply For Both Loans? – Small Businesses can apply for both the EIDL and a PPP loan. Even if you receive the $10k advance, you can apply for the PPP loan. If you are approved for both loans, you can choose which you prefer to take. Some may choose to re-finance the EIDL into a PPP.
  16. What Is The Turnaround Time? – The $10k advance payment arrives in approximately 3 days. I am unsure of the turn around on the full loan amounts as no one I am in touch with has received their full loan amount at the time of this writing.


About Aspyre Wealth Partners®

At Aspyre Wealth Partners, we specialize in helping successful people Master What’s Next®. We partner with you to define further success, and formulate strategies aligned with WHAT IS MOST IMPORTANT TO YOU.

  • We are credentialed financial planners and fiduciaries — meaning we must act in your best interest.
  • We are a Fee-Only wealth management firm — meaning we don’t earn commissions by selling insurance or making trades.
  • Our only source of revenue is from fees paid to us by our clients for financial planning, investment management, and executive coaching.
  • Aspyre Wealth Partners is based in Kansas City and we serve clients globally.

Collectively as a team we spent dozens of hours reviewing the CARES Act, as well as the recently passed Families First Coronavirus Response Act. Our objective is to understand these Acts, so we can advise our clients in our role as fiduciary and provide insights during this time of uncertainty. Our president, Matt Starkey, M.S.F.S., CFP®, CAP®, AEP®, made a decision to publish our insights in an effort to help.

At Aspyre WE KNOW YOUR GOALS ARE NOT MERELY FINANCIAL. You have goals for family, career, business, relationships, health and well-being, growth and education, quality of life…and yes, you also have financial goals. With us, it all starts with defining what success means for you. Whether you need help refining one aspect of your financial life, or a fully aligned, comprehensive strategy, we can help you…MASTER WHAT’S NEXT®.


Additional Resources

  1. Many states offer additional loan programs for small businesses. Other companies and organizations offer grants and services to Small Businesses. Check with your local Small Business Administration office and economic development entities for resources. Many are offering free or reduced cost services to assist Small Business owners.
  2. Summary Information about the Payroll Protection Program or PPP Loan
  3. Summary Information about the CARES Act


Angela Kreps leads commercial strategy for the firm, seeking to connect with new clients to define their goals, develop outcomes-based plans, and Master What’s Next®. Prior to joining Aspyre, she spent 30 years in executive leadership and business development roles, including 10 years as CEO of a bioscience organization.