On Monday, April 6, the SBA issued some clarification and guidance regarding the EIDL grant program. The good news is that checks for this grant should start being distributed this week. The not so good news is that not everyone will be receiving the full $10,000 grant. The recent update from the SBA clarified that businesses will receive $1,000 per employee, up to 10 employees and $10,000. Sole proprietors and gig workers would receive just $1,000. This isn’t great for small businesses hoping for some relief from ever-mounting bills, but at least it is something. If you have not applied, the application doesn’t take more than 10 minutes to complete, so it is probably worth your time. You can apply HERE.
Here’s the link to the SBA document. https://content.govdelivery.com/accounts/USSBA/bulletins/284f240
Update I confirmed today (April 7) with Kate at the Hood River County Chamber of Commerce that the above information is correct. According to Greg Price at our local SBA office, sole proprietors and gig workers are eligible for the $1,000 grant, “but it is important to set expectations that they are not, nor is anybody guaranteed this grant.”
In the meantime, if you have not yet applied for unemployment and think you may qualify, I would suggest you do so as soon as possible. The CARES Act significantly expanded access to unemployment insurance so if your business has been affected by this disaster you will probably qualify. You can apply for Oregon unemployment HERE and for Washington unemployment HERE. The Oregon site has some useful videos to help you with filing - I recommend taking a few minutes to watch them. The unemployment system is currently overwhelmed and there is still a one week waiting period before your claim kicks in, so make sure to sign up as soon as possible.
Because the EIDL grants will be much less than expected for many businesses, and the PPP loans seem to be confusing and difficult to apply for, I think it is time for small businesses to shift gears and start working on a Plan B to manage your businesses through this shutdown, without relying completely on SBA loans and grants. If your business is in a place where you are comfortable taking on debt, the SBA loans might make sense. For many, though, this is not a good time to take on more debt and risk. Plan B will look different for each individual business, but our team will spend this week researching options and ideas to help make sure our local businesses are still around when this is all over.
If you have specific questions or need advice, please reach out and one of our pro-bono attorneys will get back to you quickly. We’re here to help you.