Economic Injury Disaster Loan (EIDL) is out of Money and Slow
Updated: May 13, 2020
The $10,000 economic injury disaster loan (EIDL) emergency advances, which the Treasury instructed the U.S. Small Business Administration to disburse within three days of being requested is oversubscribed. To combat the overflow, SBA restricted the businesses to $1,000 advance per employee. As of today, congress allocated $17 billion for EIDLs, but nearly 4 million businesses have applied, totaling $383 billion.
Speed is another issue. EIDL advances way longer than 3 days to arrive. As of today, EIDL has been processing applications from March 29th based on the many Facebook, Reddit and Slack groups businesses reports. Currently, credit pulls are happening for businesses that applied on March 29th. Many business owners are saying they are for the first time happy to see a credit pull from Experian even of it drops their score. With no communication from the SBA, at least they see that there is progress.