Guidance on calculating the forgiveness of PPP loans is expected to be released soon.
In the meantime, here's an update on SBA's Paycheck Protection Program (PPP), the Economic Injury Disaster Loan & EIDL Advance, and our Debt Relief for existing and new 7(a) & 504 Loan program borrowers!
Paycheck Protection Program (PPP) Loans Are Still Available
Small Businesses, Private Nonprofits and Ag-Sector Businesses Eligible
SBA's Paycheck Protection Program (PPP) continues to be a popular program for small businesses, most nonprofits and agriculture related enterprises. Here's a glance at the numbers (as of May 14, 2020):
· 2.7M loans authorized for $193 Billion have been approved nationwide.
· Average loan size is $71,254
· 5,475 lenders are participating in the PPP nationwide
· In Kansas: 47,351 PPP loans were authorized for $5,162,470,033
Funding is still available - apply today through your local lender! Click here to find a qualified lender near you .
Questions about the PPP? Find answers here.
The U.S. Small Business Administration's (SBA) Paycheck Protection Program (PPP) loan helps small businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. The PPP is designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Consult with your local lender to see if the PPP loan is a good fit for your small business. Funding is still available - apply today through your local lender!
Already received a PPP and concerned about your good-faith certification for the necessity of your loan request and the May 18th 'safe harbor' deadline? Click here and read Question # 46
Get the latest PPP guidance and updates by bookmarking the Treasury.gov page: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
EIDL and EIDL Advance Update:
The SBA is processing Economic Injury Disaster Loan (EIDL) and Advance applications that were already in the system before April 15th on a first come, first-served basis. **Please check your spam folder in case email messages from our "SBA.gov" URL was filtered out of your email inbox**
Currently, the SBA is only accepting new EIDL applications from agriculture related businesses with 500 or fewer employees.
When SBA resumes taking new applications from non-agricultural businesses, you can apply online at www.sba.gov/disaster .
Applicants may check the status of their application by contacting the Disaster Customer Service Center: 1-800-659-2955 or via email.
If you are approved for the EIDL Advance, it will show up in your bank account in the amount of $1,000 per employee you reported on the application (up to $10,000).
After receiving the EIDL Advance, you will either be approved or declined for the EIDL full loan and notified via email. If you are approved, you will receive an email from SBA inviting you to create an account on a secure SBA website to review and approve the EIDL loan offer - or an amount less.
EIDL Program Update:The SBA’s Office of Disaster Assistance issued a message in the form of two Q&A's related to EIDL loans:
1. My Economic Injury Disaster Loan (EIDL) was approved but the amount was lower than I was expecting, why is it lower?
Answer: We had to make a difficult decision to limit loan amounts to ensure the program reaches as many small businesses as possible. SBA may be able to further assist you with funding through our Paycheck Protection Program (PPP), which provides up to 8 weeks of forgivable loan funds to cover payroll, as well as mortgage interest, rent and utility costs. We encourage you to visit sba.gov/paycheckprotection to obtain more information about PPP loans.
2. I read that the EIDL program provides up to $2 million per loan. Will it be possible to increase my loan amount?
Answer: Historically, the maximum amount of EIDL assistance is 2 million dollars. During these unprecedented times and given our current funding levels we do not expect to increase loan amounts for the EIDL program.
6-month Debt Relief for 7(a) & 504 Loans
Did you know the SBA is offering Debt Relief for current and new 7(a) and 504 Loan borrowers ?
The SBA will automatically make payments to the lender on behalf of the borrower for six (6) months! Payments will include principal, interest and any borrower fees on existing 7(a) and 504 commercial loans.
New 7(a) and 504 loans made through September 27, 2020 will be provided the same debt relief benefits. So, if you are in need of capital to start or grow your business, please contact an SBA lender to learn more.
The Kansas SBDC has a website with
resources, recorded webinars, fact sheets and guidance on responding to this
crisis and recovering your business.
Check out: COVID-19 Small Business Resources