We received an update from our partner on the Hill, NAWBO, this morning, and we’re sharing it with our loyal readers to keep them updated. While disappointing, it is our hope that this is only temporary, and that our elected officials return to the Hill very soon and get down to work supporting the country’s small businesses. After all, small business is the economic engine that powers the country.
With respect to EIDL loans, the Economic Injury Disaster Loan Program, the SBA no longer is accepting new applications related to COVID-19, including the advances. This is due to available appropriations funding. All applicants in the pipeline are being treated on a first-come, first-served basis.
For PPP loans, the SBA’s Paycheck Protection Program, the SBA expects it soon will be maxed out on the number of processed PPP loan volume. Stated differently, this means it will reach the maximum amount authorized and appropriated by Congress. Once the authorization limit is reached, SBA cannot accept any new loan applications for the Paycheck Protection Program, and also can’t then accept new lender applications to become PPP lenders.
Notably, additional information we received from the SBA tells us that if a company receives both a PPP loan and what it intends to be an EIDL grant, the grant funds will not be eligible for forgiveness. This is because EIDL grant dollars are now based on employee census, which is the same underlying data the SBA is using to approve a PPP loan.
These are challenging times for small businesses. Be sure to reach out to your banker and CPA for guidance. Thank you to our friends at NAWBO for their support of women-owned businesses across the country.
The Coppola Firm is always willing to share information and provide guidance on legal issues facing small businesses and employers across New York State.