Some small business owners waiting for a lifeline in the form of Paycheck Protection Loans under the $2.2 trillion stimulus package have held out hope that a second and smaller form of aid might keep them afloat in the meantime.
But as demand spikes for federal funds, new guidance and stalled payouts from the Small Business Administration on its Economic Injury Disaster Loans and advance grants are adding to frustrations and fears on Main Street.
Unlike PPP loans that go up to $10 million, small business owners can apply for disaster assistance of up to $2 million directly through the SBA, with $10,000 advance grants available even sooner. The SBA initially said so-called EIDL grants of up to $10,000 would be made available “within three days” of a successful application, but has since shifted language to say these advances would be available “within days” of a successful application.
The Massachusetts district office of the SBA on Monday said that the cash advances would be limited…