SBA reopens disaster lending portal
The Small Business Administration said on Monday it had reopened the Economic Disaster Lending Program (EIDL) and EIDL Advance portal to all eligible applicants experiencing economic impacts as a result of COVID-19.
SBA administrator Jovita Carranza said in a statement that the reopening would help small businesses and nonprofits.
“With the reopening of EIDL Support and the EIDL Advance Application Portal to all new applicants, other small businesses and nonprofits will be able to benefit from these long-term, low-interest loans and these emergency grants, which will reduce the economic impacts for their businesses. , the employees and the communities they support, ”said Carranza.
SBA EIDL loans can be used to cover payroll and inventory, pay off debts, or fund other expenses. In addition, EIDL Advance will provide up to $ 10,000 ($ 1,000 per employee) in emergency economic assistance to businesses currently in temporary difficulty, and these emergency grants do not have to be repaid. , Carranza explained.
The interest rate is 3.75% for small businesses and 2.75% for nonprofits.
To keep payments affordable, the SBA offers long-term loans, up to a maximum of 30 years. In addition, the first payment is deferred for one year.
Small businesses and non-profit organizations can apply for an EIDL advance of up to $ 10,000 as part of their loan application. “The EIDL Advance is designed to provide emergency economic assistance to businesses that are currently experiencing a temporary loss of income. This advance will not have to be repaid, and small businesses can receive an advance even if they are not approved for a loan, ”the SBA said.
Democrats press Mnuchin over PPP loan transparency
Meanwhile, Democratic lawmakers are speaking out against the Trump administration’s decision not to reveal the names of companies that have received loans under the Paycheck Protection Program.
House Financial Services Committee Chair Maxine Waters, D-California, as well as House Ways and Means Committee Chair, Richard Neal, D-Massachusetts, and Rep. Nydia M. Velázquez, D-New York, chair of the House Small Business Committee, said Treasury Secretary Steven Mnuchin and the SBA in a letter on Monday saying it was “their duty to be transparent and accountable stewards of money US taxpayers and expressed dismay at the decision. “
Waters, Neal, and Velzaquez urged the Treasury and the SBA to provide the names of all PPP loan recipients, the dollar amount of all loans received, and the names of all applicants who did not receive PPP loans.
“As you know, Congress authorized PPP to provide much needed financial assistance to small businesses struggling to stay afloat during the coronavirus pandemic,” lawmakers wrote. “However, shortly after the enactment of the CARES Act, it was reported that larger, profitable businesses were receiving PPP loans while many needy small businesses were unable to obtain loans. Many Americans were rightly concerned about this disturbing news. “