Dear small business community,
Last week, the SBA temporarily paused new applications for EIDL and PPP disaster lending programs due to limited funding. We have received several questions from clients as to what this means.
The San Francisco District SBA office has provided several FAQ’s to help bring additional clarity to this situation:
Q: I have already submitted an application to the PPP with my lender. Does this mean I will not be funded?
A: For Paycheck Protection Loans, only approved loans are being processed at this time. Applicants will need to consult with their lender as the lender is the one approving the loan.
Q: I have already submitted an application to the Economic Injury Disaster Loan Program with SBA. Does this mean I will not be considered?
A: No. Economic Injury Disaster Loan applications are continuing to be reviewed, approved, and funded on a first come, first serve basis. In order to ensure funding to those who already applied, new applications were no longer accepted starting last Thursday.
However, all applicants must still be approved for funding by SBA and can check on their application with the Office of Disaster Assistance at 1-800-659-2955.
Q: Will there be more money made available for PPP?
A: Maybe. Congress is currently negotiating another stimulus bill. We do not know the details and cannot comment or speculate on pending legislation.
Q: Can I still apply for PPP and have my application held until there is additional funding?
A: By law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations. SBA will not be creating a queue. Some individual lenders may be choosing to in anticipation of additional funding.
Q: I can’t find the EIDL application
A: The application is temporarily closed. SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.
Q: I already submitted my EIDL application but haven’t heard back from SBA yet. Is my application still being processed?
A: Yes. All applications received are being processed. For an update on an application applicants must call 1-800-659-2955 and speak with the Office of Disaster Assistance.
Visit the U.S. Small Business Administration’s website for more information.
To become an SBDC client, visit https://ucmsbdc.ecenterdirect.com/signup /.
Current clients email slosbdc@gmail.com and be connected with your assigned consultant.
Comments are closed.