![]() 30-Day Exclusivity Window for Loans of $500,000 or Less.The SBA stated that this change was designed to allow business owners to “get through the pandemic without having to worry about making ends meet.” Small business owners will not have to begin COVID EIDL repayment until two years after loan origination. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment and paying debt. The SBA will lift the COVID EIDL cap from $500,000 to $2 million. For more information on COVID EIDL and other recovery programs, visit September 9, 2021, the Small Business Administration (“SBA”) announced several changes to its Economic Injury Disaster Loan (“EIDL”) Program. For more information about eligibility and application requirements, visit The last day that applications may be received is Dec. states and territories are able to apply for the EIDL program. Congress and the Biden administration must prioritize refilling this proven grant program so the nearly 200,000 businesses left behind in the first round of funding have an opportunity to survive the pandemic.”Įligible small businesses, nonprofits, and agricultural businesses in all U.S. That’s why restaurant and bar operators from around the country tailored the Restaurant Revitalization Fund to their businesses’ unique needs. Restaurants and bars have notoriously slim margins and have no chance to recover from their losses and navigate the uncertain future without debt-free financial relief. These small businesses have accumulated a year and a half of debt and now face consumer hesitancy and rising food costs that continue to cut into their bottom lines. “Restaurant and bar operators exhausted all personal and business savings just trying to keep their businesses afloat. “Loans have never been and never will be the solution for neighborhood restaurants and bars,” said Erika Polmar, executive director of the Independent Restaurant Coalition, in a statement. The loans, however, may not be enough to help many struggling small businesses, such as restaurants. The changes will help entrepreneurs access capital at a time when, according to a recent Goldman Sachs 10,000 Small Businesses survey, 44% of small business owners report having less than three months of cash reserves, and only 31% report confidence in gaining access to funding. ![]() The improvements to the COVID EIDL program aim to give businesses more flexible support from the over $150 billion in available COVID EIDL funds. This increase will give small businesses access long-term, affordable loans to keep their doors open during the pandemic and prepare for the future.” “Dollar for dollar, EIDL is one of the best investments the federal government can make in our nation’s small businesses. “I am grateful that the Biden administration continues to implement changes to make EIDL more useful to American small businesses,” he said in a statement Thursday. Senate Small Business Committee Chair Ben Cardin, D-Maryland, praised the changes in the program. To simplify the COVID EIDL application process for small businesses, the SBA has set up easier affiliation requirements modeled after the Restaurant Revitalization Fund. ![]() Approval and disbursement of loans over $500,000 will start after the 30-day period.ĬOVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt. To give Main Street businesses more time to access the funds, the SBA will offer a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. The SBA also plans to make sure small business owners won’t need to begin COVID EIDL repayment until two years after loan origination. EIDL funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.
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