Almost every entrepreneur and business owner I know wants to get their share of the EDIL and PPP loans through the Cares Act.
Remember, if you want to get a PPP loan, you will have to go through a bank and to get an EIDL, as of now, you will go directly to the SBA. But as of this morning, the banks are not taking applications under the new rules. And[ak1] despite what the treasury secretary says, we think it’s still going to take some weeks.
The bulk of the action is going to be with the PPP program. $349 billion vs. $10 billion for EIDL’s. And if you are going to want to get one of these, we think your best bet is going to be to start with your current bank. We believe most banks who participate will take care of their customers first.
For the EIDL's, kudos to the SBA, it looks like the new site is up to take these applications. If you apply now, we expect you will get your $10,000 grant check within three days as a starting point. But be careful – you can’t use the proceeds from an EIDL for the same purposes as a PPP.
One tip – if you are worried about cash for the next few weeks – ask your bank for a bridge loan. This amount will be able to be refinanced into your PPP. The worst they can say is no.
As I have said before, the information on the ground keeps changing. Log onto one of our daily webinars for the latest, and feel free to reach out to us if you would like some additional help. But please note – WE ARE NOT TAKING PPP APPLICATIONS – and no one should be yet.