- The SBA targets early April to launch several updates to COVID-19 relief loans and grants
PPP Loan Application Deadline Extended to 5/31
This past Tuesday, Biden officially signed off on the PPP loan application extension, now allowing prospective loan recipients to apply for a PPP loan by May 31, 2021.
EIDL Loan Limit To Increase on 4/6
Starting April 6, the SBA will increase loan limits on the Economic Injury and Disaster Loan (EIDL). Borrowers are now eligible for loan coverage up to 2 years of economic injury, with a maximum loan amount of $500,000.
All loans currently being processed will be automatically considered for the new maximum limits, according to the SBA. Existing borrowers seeking the new loan benefits can request increases on April 6.
Originally, the loan provided coverage for a max of 6 months of economic injury, with a max loan amount of $150,000.
SVOG Applications to Open on 4/8
On April 8, applications open for the SBA’s Shuttered Venue Operators Grant (SVOG). Totaling at $16 billion, the grant looks to provide economic relief for live venues (including theaters, museum, live performing art venues, etc.) that were shuttered due to the pandemic.
The SVOG was established by the Economic Aid to Hard-hit Small Businesses, Nonprofits and Venues Act last December and granted an extra $1.25 billion by the ARP. The ARP also modified the grant such that all entities who applied for a PPP loan after December 27, 2020 may “double-dip” and also apply for the SVOG.
Restaurant Revitalization Rollout to Launch Early April
The SBA is currently planning to begin rollout on the Restaurant Revitalization Fund (RRF) in early April. Restaurants can receive up to $10 million per entity or $5 million per physical location. The fund is budgeted at $28.6 billion with $5 million set aside for the smallest entities (those with $500,000 or less in 2019 gross receipts). The SBA has stated that the RRF will prioritize applicants from women and minority-owned businesses.
Want your business to receive maximum benefits from these grants and loans? Call the experts on DSJCPA’s Coronavirus Response Team at 516-541-6549 and visit our COVID-19 Information Center to learn more.
Associate, Creative Solutions
516-541-6549 | Email