SBA’s $10,000 Disaster Loans Come with New Caveats

High demand for Economic Injury Disaster Loans (EIDL) has led to important changes limiting the size of the payouts for some small-business owners.
While small-business owners across America line up to get their Paycheck Protection Program (PPP) loans—a process that has been a bit chaotic—the Treasury Department has touted the EIDL as a stopgap option. Small businesses that apply for EIDLs can request an advance of up to $10,000.
Now, there are some caveats. The U.S. Small Business Administration’s Massachusetts District Office announced in a bulletin on April 6 that, nationwide, the SBA has decided to implement a $1,000 cap per employee on the advance, up to a maximum of $10,000. So, a business with three employees, for example, would be eligible to receive only $3,000 up front, as opposed to the originally stated $10,000.
Read more at Inc. >>