Dear Clients, Business Associates and Friends:
Beginning Monday June 22nd , The Small Business Administration is reopening its Economic Injury Disaster Loan and EIDL Advance Grant Portal to a broader array of eligible small businesses and nonprofits affected by the coronavirus pandemic.
The portal had been accepting applications only from agricultural businesses for the last month, as demand was high, and those businesses had not been EIDL eligible in the past.
To meet the unprecedented need, the SBA has made numerous improvements to the application and loan closing process, including deploying new technology and automated tools.
The EIDL program has gotten less attention than the SBA’s Paycheck Protection Program, which has been popular on Main Street but had a rocky initial rollout with businesses delayed in getting funding and large public companies being shamed into returning funds. As of Sunday June 14th , 1.43 million loans had been approved for a total of $95.6 billion through the EIDL program.
The loans available under the program had been for as much as $2 million, but that number was dropped to $150,000 due to demand. The program’s emergency grant was also dropped from its initial amount of up to $10,000 per business, to $1,000 per employee, per business.
As of Friday June 14th , the PPP had 4.5 million loans approved for a total of $512 billion, with nearly $130 billion left unallocated for small businesses.
Data from the National Federation of Independent Business from earlier this month found that of the respondents who applied for an EIDL loan, 57% have been approved so far, 38% have not heard yet about the status of their application, and 5% were denied. About 36% of EIDL applicants have received the loan as of June 2nd . Sixty-nine percent of those who requested the EIDL emergency advance had received those funds.
Unlike the Paycheck Protection Program, which businesses have the opportunity to apply to through June 30th , businesses can apply to the EIDL programs through the end of the year.
AS ALWAYS, WAGNER & ZWERMAN IS HERE TO ANSWER ALL OF YOUR QUESTIONS AND CONCERNS. WE ARE ALL IN THIS TOGETHER.
** IF YOU HAVE MISSED ANY PREVIOUS WZ WEBINARS OR COMMUNICATION IN REGARDS TO COVID-19, PLEASE REFER TO OUR WEBSITE