After more than a month, the Small Business Administration has finally reopened the Economic Injury Disaster Loan and Advance Emergency Grant program. Small business applicants from all industries may now immediately apply for assistance.
This announcement follows weeks of discussion between NFIB and SBA officials. While NFIB helped secure additional EIDL funding from Congress in March, SBA restricted the program to agricultural businesses starting on May 4. These restrictions have been lifted.
“We welcome reopening of the application process for all small businesses,” said Kevin Kuhlman, NFIB Vice President of Government Relations. “The EIDL program is a long-term, low-interest loan option that Main Street job creators can utilize to help weather the storm of both the pandemic and the government-ordered shutdowns.”
Small businesses that apply for the EIDL program may obtain loans that, per the SBA, can be used to “pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan.” Repayment terms may last up to 30 years and the interest rate for small business is 3.75%.
Additionally, when submitting an EIDL application, small businesses may request an Advance Emergency Grant for $1,000 per employee, up to $10,000. According to the SBA, “this advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan.”
Beyond the EIDL program, SBA recently revised guidance and released updated loan forgiveness applications and instructions for the Paycheck Protection Program (PPP). The program now offers additional flexibility on loan forgiveness for existing loans and longer loan maturity and deferral periods of loan payments for new loans issued after June 5, 2020.
Small businesses that need assistance through the PPP are still able to apply for up to $10 million in forgivable loans through June 30, 2020. Please note that the application form has changed following the revised guidance.
NFIB hosted a webinar on these and other issues on Wednesday, June 17th. Titled Overcoming Financial and Employee Challenges in the Covid-19 Era, it covered:
- Employment: Return to work challenges and how to surmount employee fear of Covid-19 exposure and worker resistance to losing enhanced unemployment benefits.
- Financial: Loan programs including PPP forgiveness updates, how to calculate forgiveness, and recent EIDL developments.
- Operational: Current and potential issues to think about now and how to pivot and expand your business’s strategy to be relevant to your customer’s and client’s needs now.
Please click here to register for upcoming webinars and watch previously recorded webinars.
Learn more by visiting NFIB’s hub on small business resources during the coronavirus.
