SIOUX FALLS – The United States Small Business Administration (SBA) Announced Updated Guidelines for COVID Economic Disaster Lending (EIDL) Program Applicants to Better Serve Small Business Owners in Need , while funding remains available.
Since its inception, the COVID EIDL program, a federal disaster relief loan designed to better serve and support our small businesses still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms and hotels, has approved nearly $ 300 billion in relief aid.
Specifically, the following updated guidelines are provided:
â¢ EIDL Loan and Targeted Advance requests will be accepted until December 31 and will continue to be processed after that date until funds are exhausted.
â¢ Requests for an additional targeted advance will be accepted until December 31; however, the SBA may not be able to process certain additional targeted advance requests submitted near the December 31 deadline due to legal requirements. The SBA cannot continue to process additional targeted advance requests after December 31, and strongly encourages eligible small businesses to apply by December 10 to ensure adequate processing time.
â¢ 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 occurs first.
â¢ The SBA will accept and consider reconsideration and appeal requests for EIDL COVID requests received by December 31 if the reconsideration / appeal is received within the prescribed timeframe. This means six months from the denial date for reviews and 30 days from the denial of reconsideration date for appeals, unless funding is no longer available.
âThe Economic Disaster Lending (EIDL) and EIDL Advance programs still have billions of dollars available 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, âsaid Patrick Kelley, associate administrator of the SBA’s capital access office. SBA. âKey improvements have been made to the loan program that will help businesses across our country recover and get back on track. “
In September, Administrator Guzman announced major improvements to the COVID Economic Disaster Lending (EIDL) program. The main changes announced included:
â¢ Increase in the COVID EIDL cap. The SBA has raised the COVID EIDL 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.
â¢ Establishment of a Deferred Payment Period. The SBA will ensure that small business owners won’t have to start COVID EIDL repayment for two years after the loan is issued so they can weather the pandemic without having to worry about making ends meet.
â¢ Establishment 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 30 day period ended.
â¢ Expansion of the eligible use of funds. EIDL COVID funds are now eligible to prepay commercial debt and make payments on federal commercial debt.
â¢ 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.
According to SBA South Dakota District Director Jaime Wood, nearly 9,000 COVID-19 EIDL loans – equivalent to $ 722 million in capital injection – have been approved for small businesses, organizations for nonprofit and agricultural producers in South Dakota. âEvery week, the number of COVID-19 EIDL loans and the volume of loans continue to increase in South Dakota,â Wood said. “This indicates that our affected small businesses are still feeling the economic ripples caused by the pandemic and that additional disaster assistance is helping to keep operations going.” Without the support of the SBA in an economic disaster, many businesses and nonprofits would not survive. Wood added that more than 400 additional advance requests have been approved and awarded in South Dakota, for a total of $ 2 million in additional disaster support.
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 the eligibility and application conditions. 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 the order received and the SBA cannot guarantee that all requests will be processed before December 31. . All applicants should submit their applications 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 email [email protected] for assistance additional. The center is open Monday through Friday, 8 a.m. to 8 p.m. EST. Multilingual representatives are available.
IMPROVEMENTS IN THE APPLICATION PROCESS AND THE FIGHT AGAINST FRAUD
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 Administrator Guzman to rapidly 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 implementation decisions taken. The SBA has sped up 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. As a result of these increased loan review rates, the increasing backlog of over 600,000 loans 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.