When the CARES Act was signed into law on March 27, 2020 it not only included the Paycheck Protection Program, but also expanded the Economic Injury Disaster Loan Program.

This expansion includes the following:

• Adds businesses, cooperatives, ESOPS and tribal small business concerns with not more than 500 employees and individuals operating under a sole proprietorship (with or without employees) or as an independent contractor as entities eligible to participate in the EIDL program.
• The Administrator shall waive any personal guarantees on advances and loans of not more than $200,000; the requirement that applicant needs to be in business for a one-year period prior to the disaster (no waiver shall be made for a business that was not in operation om January 31, 2020); and the requirement that an applicant be unable to obtain credit elsewhere.
• Applicants may be approved based solely on their credit score and shall not be required to submit a tax return for approval or may be approved based on the use of alternative appropriate methods to determine an ability to repay.
• Requests to provide advances of not more than $10,000 may be made by applicant and provided to applicant within three days after the Administrator receives an application from such applicant.  Verification that applicant is an eligible entity will be by self-certification of applicant.  The funds may be used for any allowable purpose under the EIDL program. An applicant shall not be required to repay any amounts on an advance provided, even if subsequently denied a loan. If an applicant receives an advance and later transfers into or is approved for a loan under the Paycheck Protection Program the advance amount shall reduce the loan forgiveness amount for such loan.