In recent news from the Small Business Administration (SBA), Economic Injury Disaster Loans (EIDL) have now been capped at $150,000 and the SBA has also announced that they will only be accepting new applications for EIDL funds from agricultural interests.
This is an enormous change from a loan program that initially outlined providing long-term debt at low interest rates (3.75% for business and 2.75% for non-profits) up to $2,000,000. The reduction in the maximum amount of the loan to $150,000 is over a 90% reduction in the top-end loan amount. Also, recently the SBA capped the emergency grant funding of $10,000 to a limit of $1,000 per employee up to $10,000, versus the flat $10,000 that was granted at the start of the COVID-19 crisis.
The SBA stated that the overwhelming demand for EIDL funding and limited funding from the federal government has caused the SBA to limit the funds to $150,000 with the primary focus of these funds to first and foremost support agricultural businesses. The SBA stated that any loan application received before April 15, 2020, would be processed in accordance with when it was received, but did not give any timeframe on how quickly they would be able to respond to any applicant.
If you have any questions, please reach out to our team at email@example.com. We will continue to provide updates as quickly as possible as further information becomes available on the EIDL program. Please check back to our COVID-19 Resource Center at macpas.com/covid-19 for further updates on all COVID-19 related business matters.
This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although McKonly & Asbury has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.