Metro Creative Connection
Sat Nov 20, 2021 12:30 PM
The Agency strongly encourages the submission of additional advance requests by December 10; all applications must be submitted by December 31
The U.S. Small Business Administration (SBA) on Friday announced updated guidelines for COVID Economic Catastrophe Loan (EIDL) applicants to better serve small business owners in need, while that funding remains available.
Since its inception, the COVID EIDL program, a federal disaster relief loan designed to better serve and support small businesses still reeling from the pandemic – especially hard-hit sectors such as restaurants, gyms and hotels – approved nearly $ 300 billion in emergency aid. Specifically, the following updated guidelines are provided:
√ Applications for EIDL loans and targeted advances will be accepted until December 31st and will continue to be processed after that date until funds run out.
√ Additional targeted advance requests will be accepted until December 31; However, the SBA may not be able to process some additional targeted advance requests submitted near the December 31 deadline due to legal requirements. The SBA cannot continue processing additional targeted advance applications after December 31, and strongly encourages eligible small businesses to apply by December 10 to ensure adequate processing time.
√ Borrowers can request increases up to their maximum eligible loan amount for up to two years after their loan inception date, or until funds run out, whichever comes first.
√ The SBA will accept and consider reconsideration and appeal requests for COVID EIDL requests received on or before December 31 if the review / appeal is received within the prescribed timeframe. This means six months from the denial date for reviews and 30 days from the denial date for reconsideration appeals – unless funding is no longer available.
“The COVID Economic Disaster Disaster (EIDL) and EIDL Advance Loan programs still have billions of dollars to help small businesses hit hard by the pandemic. Over 3.8 million businesses employing over 20 million people have found financial assistance through SBA’s economic disaster loans, ”said Patrick Kelley, associate administrator of the Capital Access Office of the SBA. SBA. “Key improvements have been made to the loan program that will help businesses across our country recover and get back on track. “
In September, administrator Isabella Casillas Guzman announced major improvements to the EIDL program. The main changes announced included:
√ Increase in the COVID EIDL cap. The SBA has raised the cap from $ 500,000 to $ 2 million. Loan funds can be used for all normal operating expenses and working capital, including payroll, equipment purchase, and debt repayment.
√ Establishment of a deferred payment period. The SBA said it “will ensure that small business owners do not have to start the COVID EIDL repayment until two years after the loan is issued so that they can weather the pandemic without having to worry about make ends meet “.
√ Implementation of a 30-day exclusivity window. To ensure that Main Street businesses have more time to access these funds, the SBA has implemented a 30-day exclusivity window for the approval and disbursement of funds for loans of $ 500,000 or more. less. Approval and disbursement of loans over $ 500,000 began after the end of the 30 day period.
√ Expansion of eligible use of funds. EIDL COVID funds are now eligible to prepay commercial debt and make payments on federal commercial debt.
√ Simplification of membership conditions. To make the EIDL COVID application process easier for small businesses, the SBA established simplified membership requirements to model those of the Restaurant Revitalization Fund.
How to register
Qualifying small businesses, nonprofits, and farm businesses in all U.S. states and territories can apply. Visit www.sba.gov/eidl to learn more about eligibility and application requirements. The last day on which requests can be received is December 31, 2021. Requests received before December 10 for the additional advance will be processed in order of receipt; the SBA cannot guarantee that all requests will be processed by December 31st. All applicants should submit their application as soon as possible to allow for processing.
For more information on COVID EIDL and other recovery programs, visit www.sba.gov/relief.
Small business owners can call the SBA Customer Service Center at 1-833-853-5638 (855-440-4960 for the deaf and hard of hearing) or send an email [email protected] for additional help. The center is open 8 a.m. to 8 p.m. EST weekdays. Shortened hours will be observed during the Thanksgiving Holidays (closed on Thanksgiving Day; open 9 a.m. to 5 p.m. Friday, November 26 through Sunday, November 28). Multilingual representatives are available.
Small business owners can also contact SBA resource partners by visiting www.sba.gov/local-assistance.
Improvements to the application process and fraud control
In addition to policy improvements, the SBA has invested in optimized processes and increased capacity to improve the customer service experience for applicants. Led by Guzman to “Quickly and Dramatically Improve COVID EIDL,” the reorganized leadership team implemented new processes and performance management, such as prioritizing staff for COVID EIDL and increasing the average number of decisions application taken. The SBA has accelerated the daily processing of loan increases, from nearly 2,000 requests to over 37,000 requests per day. The productivity of loan officers also increased from 1.86 requests per day to 15 requests per day.
The SBA said, “As a result of these increased loan review rates, the backlog of over 600,000 loan increases has been cleared and new applications are being processed immediately. At the same time, and to ensure that taxpayer dollars are used to support businesses most in need of COVID EIDL funding, the SBA has strengthened fraud controls and is working with the Inspector General. of the SBA to closely monitor the program. “
All business owners who have received prior loans under the SBA’s Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF) or Grant for Closed Site Operators ( SVOG) can still benefit from COVID EIDL. To learn more about the application process, visit www.sba.gov/eidl.
About economic disaster loans
In response to COVID-19, small business owners, including farm businesses and nonprofits in all states, DCs, and U.S. territories, can apply for EIDL. The purpose of EIDL is to provide financial assistance to small businesses to meet financial obligations and operating expenses that might have been covered had the disaster not occurred.
To learn more, visit www.sba.gov.