The business has severally affected due to COVID 19. For EIDL, do they look at cash reserve of the company? Having a strong cash position in business helps or hurts the EIDL case? If it hurts the case, does it make sense to take the distribution?

No. they look only at gross revenue and cost of goods sold as a measure of net operating expenses (which is asinine and totally gameable, but whatever). They will give you a loan for max($150,000, (revenue-COGS)/2).

When I was connected to a tier 2 representative yesterday she informed me that they do look at that information after we kind of hit it off. Previously we were both loan officers in the mortgage business so I feel she gave me a bit more information than most.