In a recent update from the U.S. Small Business Administration, the Chamber has learned the status of specific loan and grant programs and has outlined them below. Please contact our offices for more information or assistance.
- If a business has not applied for the Economic Injury Disaster Loan (EIDL), they should do so quickly. While the EIDL “advance” has allocated all of its funds, the EIDL loan is still available. The “advance” was the grant of up to $10,000.
- The Paycheck Protection Program (PPP) has been extended to August 8th and there is over $100 billion still available.
- CARES Act debt relief is available through September 27th. Click here for an informational flier.
- Requesting non-disaster loans is still an option. Keep in mind that debt service on the disaster loans will need to be included and covered as part of a bank’s review.
- EIDL loans over $25,000 were secured by business assets. Therefore, the potential borrower will need to address that with the SBA if approved for future loans by a bank.
- EIDL Loan eligibility determination and the next steps for requesting an increase.
A business’ initial EIDL Loan eligibility amount was calculated based on its estimated economic injury (6 months operating margin of the business), with the following deductions: (1) any advance to which the owner may have been entitled ($10,000) and (2) any other compensation that the owner reported in the application. The result was the initial EIDL loan eligibility amount.
A business may request an increase to the loan amount up to 2 years after receiving the funds. That increase may be placed after a business has accepted its initial offer. The business may be required to submit documentation demonstrating that its economic injury was greater than reported in the initial application (such as 2019 revenue being greater than originally estimated).
The attached SBA Form 3502 “Economic Injury Disaster Loan Supporting Information” may be helpful to complete as part of a request for an increase. The completed form will help move a request review along more quickly. Increase requests are processed in the order they are received.
For more information, visit the Ohio Small Business Development Center branch office website by clicking here.