Alright, I have an update, well, sort of. So I called the 1800 number of the SBA and talked to a rep after waiting about 1 hour. She was relatively nice. Following is the conversation:
Me: So I submitted the application Tuesday and I requested the $10,000 advance grant. Today's Friday. Where's my money, dawg? (just kidding, I did not say that last sentence)
Rep: It will take about 3 weeks before you get an email about your eligibility.
Me: Huh? But Congress says 3 days in the law?
Rep: Well, the 3 days begins when we accept your application and process your eligibility , not when you submit it. (Now, I disagree. I think she's wrong, or the SBA is wrong).
Me: OK, but Congress also said, I can still get the advance as a grant, even if I am later denied the loan.
Rep: That is correct. That sure is a possibility (now we were on the phone, but I pretty sure I detected a "wink wink" here)
Me: So then why does it take 3 weeks?
Rep: Because it does. Just keep watching your email and phone. They may email or phone you.
Me: But I still don't understand...
Rep: IT TAKES 3 WEEKS. KEEP WATCHING EMAILS.
Me: Alright....
I am posting the text of the bill directly from Congress, and bold the relevant parts:
(e) Emergency Grant.—
(1) IN GENERAL.—During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Administrator receives an application from such applicant.
(2) VERIFICATION.—Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to section 1746 of title 28 United States Code.
(3) AMOUNT.—The amount of an advance provided under this subsection shall be not more than $10,000.
(4) USE OF FUNDS.—An advance provided under this subsection may be used to address any allowable purpose for a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)), including—
(A) providing paid sick leave to employees unable to work due to the direct effect of the COVID–19;
(B) maintaining payroll to retain employees during business disruptions or substantial slowdowns;
(C) meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains;
(D) making rent or mortgage payments; and
(E) repaying obligations that cannot be met due to revenue losses.
(5) REPAYMENT.—An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(
So, I think the SBA is full of crap. They are putting up red tapes that are nowhere to be found in the laws while Congress has written the laws in so black and white that it doesn't even leave any room for interpretation. So right now the SBA is saying:
1) We haven't received your application. It is not "received" until we review it.
-> No way. The text of the law says nothing about reviewing. "within 3 days after the Administrator receives an application from such applicant". We have a confirmation number. That mean SBA receives it. Period.
2) What is this reviewing for eligibility crap? Congress also says in black and white: "the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury".
-> We DID that self-certification in the application itself. That should be all that is required.
--> Bottom line: I think they're playing games with us and the SBA is blatantly defying Congress.
I think I am going to start writing to my Senators and Representatives. Let's make some noise
