SBA Strengthens Disaster Loan Program Citing Challenges Of Delta Variant
The Small and Medium Business Administration said on Thursday that the Delta version of COVID-19 will continue to expand nationwide, so more SMEs will have access to government financial support under a program to disaster loans. Improvements announced.
First, the SBA raised the loan limit on its disaster and economic damage loan program (a low-interest loan that pays back in 30 years) from $ 500,000 to $ 2 million. The funds can be used for all operating expenses, such as purchasing equipment and paying off debts.
The SBA also postponed loan repayments for two years after it began repaying to give small business owners more time to “weather the pandemic without worrying about meeting their goals,” the SBA said Thursday. Said in a press release.
The SBA will only approve and pay off loans of $ 500,000 or less for 30 days, giving SMEs access to relief funds.
The SBA is also streamlining the application, approval, and payment processes to provide more business support. Eligible businesses can apply for a loan on the SBA website until December 31, 2021. Paycheck Protection Program loan recipients can also apply for EIDL funding.
Today, the SBA processes more than 37,000 requests per day, up from around 2,000 the day before the pandemic. According to the government, the productivity of lenders has increased from 1.86 requests per day to 15 requests per day. The SBA declares that it has deleted the application blacklog and is immediately processing new applications.
“SBA’s COVID Economic Damage and Disaster Loan Program Provides Lifeline to Millions of SMEs Affected by the Pandemic, “ SBA administrator Isabel Casillas Gusman said in a statement Thursday. “We have reworked this important program. We increased our borrowing limit to $ 2 million, offered a 24-month deferral, and increased flexibility to allow borrowers to repay higher interest commercial debt. . “
The goal of the SBA is to ensure that all entrepreneurs in need have the capital they need to reopen, recover and rebuild, ”added Guzman. ..
Difficult to access capital
Small business owners who still struggle to access capital say they are grateful for the initiative.
44% of small business ownersAccording to a Goldman Sachs report, only 31% of small business owners are confident they will have access to capital when needed. Black owners are getting worse, according to a survey of more than 1,100 small businesses. Over 50% of black-owned SMEs have less than three months of cash on hand, and only 20% of black-owned SMEs are very confident in their access to capital. I bring.
“By updating and expanding the COVID-19 Economic Damage and Disaster (EIDL) Loan Program, we have been encouraged and reassured to see the Byden administration prioritizing access to capital for SMEs. Goldman Sachs 10,000 SME Voice President Jessica Johnson Corp. said. Owner of the National Leadership Council and the Johnson Security Bureau in the Bronx, NY. “”This gives small business owners like me access to affordable working capital as they continue to face ongoing challenges on their road to recovery. “
Source link SBA Strengthens Disaster Loan Program Citing Challenges Of Delta Variant