Funds Available for COVID Economic Injury Disaster Loan Program

Kansas City District Office  - August 2021

u s small business administration
EIDL

 


Funds Available for SBA's COVID-19 Economic Injury Disaster Loan Program

Kansas and Missouri Small Businesses Encouraged to Apply Prior to the December 31, 2021 Application Deadline

Small businesses that have been impacted by the COVID-19 pandemic still have time to apply for long term, low interest Economic Injury Disaster Loan (EIDL) from the U.S. Small Business Administration. These working capital loans provide a maximum of $500,000 for small businesses to use to offset economic injury experienced during the pandemic. Proceeds of the loan may be used for credit card payments, increased wages, accumulated rent, increased cost of goods sold, and more.

The SBA has taken measures to improve the EIDL application and approval process. In late June, the COVID EIDL Loan Program was transitioned from the Office of Disaster Assistance to the Office of Capital Access (OCA). This transition included implementing new processes and performance management, and dedicating additional personnel to increase capacity of the review process. This transition resulted in daily processing of EIDL increases of 1,647 on June 28th to 37,027 on July 28th – a 22-fold increase in production efficiency. The SBA estimates that the current 600,000+ loan modification backlog to be cleared by mid-August, with most reviewed by early August.

The SBA has also invested in an improved customer service experience for COVID EIDL applicants which includes more than doubling capacity, enhancing standards and response quality, and developing application completion support. The SBA will also be providing enhanced outreach efforts to deliver COVID EIDL program information to all communities, including socio-economically disadvantaged communities via partnerships, and webinars. 

“The COVID EIDL disaster program is an opportunity for a business to access long term capital at historically low rates as business activity resumes, if their credit score is at least 570,” said Kansas City SBA District Director Michael Barrera.  Processing times for applications have been vastly improved, and the loan amount has increased up to $500,000 subject to approval.”

Barrera encourages business owners in Kansas and Missouri to apply well ahead of the December 31 application deadline as funding may run out prior to that date. The online application can be access through this link: www.sba.gov/eidl

Business owners interested in learning more about the COVID EIDL program should review the FAQ located on SBA’s website: https://www.sba.gov/document/support-faq-regarding-covid-19-eidl

 

SBA Announces Opening of Paycheck Protection Program Direct Forgiveness Portal

Illustration of a laptop with text that includes, PPP Forgiveness Portal

The U.S. Small Business Administration is launching a streamlined application portal to allow borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less through participating lenders to apply for forgiveness directly through the SBA.    

“In Region VII there are 867 lenders already signed up to use the new forgiveness portal and they completed 216,938 PPP loans under $150,000, representing over $4.6 billion dollars of PPP loans.  The opening on this portal allows a simpler method for borrower and lender to meet the need of the business, lender and the agency,” said Region 7 Acting Administrator Leon Milobar. 

This new change will help rush relief to over 6.5 million smallest of small businesses nationally, which has been the priority of SBA Administrator Isabel Guzman since day one.

The new forgiveness platform started accepting applications from borrowers on August 4th, 2021.  Lenders are required to opt-in to this program through https://directforgiveness.sba.gov. 

In addition to the technology platform, the SBA is standing up a PPP customer service team to answer questions and directly assist borrowers with their forgiveness applications.  Borrowers that need assistance or have questions should call (877) 552-2692, Monday – Friday, 8 a.m.- 8 p.m. EST.

“This initiative will allow PPP borrowers to put their concerns of achieving full forgiveness behind them and focus on operating and growing their businesses again,”said Patrick Kelley, Associate Administrator for SBA’s Office of Capital Access.“We are pleased to be able to assist financial institutions across the U.S. in processing forgiveness applications for small business owners.”   

Paycheck Protection Program Summary

  • Overall, the SBA and lenders have worked to originate over 11.7 million loans totaling nearly $800 billion in relief to over 8.5 million small businesses.

In 2021:

    • SBA approved over 6.5M loans totaling over $275B
    • The average loan size was ~$42 thousand (compared to $101 thousand in 2020)
    • 96% of loans went to businesses with fewer than 20 employees (compared to just 87% in 2020.)
    • 32% of loans went to businesses in LMI communities (compared to just 24% in 2020)

Direct Forgiveness Summary

  • Over 600 banks have opted into direct forgiveness, enabling over 2.17mm borrowers to apply through the portal (This represents 30% of loans $150,000 or less that have not yet submitted for forgiveness)

Established by the CARES Act in 2020, the PPP was among the first COVID-19 small business economic aid programs. It provided more than $798 billion in economic relief to small businesses and nonprofits across the nation, keeping employees working, and helping businesses come back stronger than ever.   

Other programs include Economic Injury Disaster Loan (EIDL), EIDL Advance, Targeted EIDL Advance, Supplemental EIDL Advance, Restaurant Revitalization Fund, Shuttered Venue Operators Grant, and SBA Debt Relief program. To learn more about these programs, please visit www.sba.gov/relief.