Small Business Admin Talks Latest On EIDL, PPP, Relief for Businesses
Gregg White, the District Director of the SC Small Business Administration (SBA) office, is responsible for overseeing the implementation and the delivery of agency programs ranging from capital access assistance, small business counseling, business development programs, and overall leadership.
Gregg gave details about the loan and grant updates for the EIDL and PPP programs now available for small businesses needing monetary help during this time.
- Economic Injury Disaster Loan (EIDL) – Grant giving $1,000 per employee up to 10 employees. This is a cash advance and no repayment is required. This
process from the time the application is completed takes 2 weeks to 30 days to receive funding. At this time, only agricultural business applications
will be accepted due to limitations in funding availability and the unprecedented submission of applications already received.
- Paycheck Protection Program (PPP) – Loan up to $10M which is forgivable if 60% is used for payroll and 40% is spent on rent, mortgage interest, or utilities. This loan is for eligible expenses paid or incurred during the 24-week period after receiving the loan. Applications are available through June 30. This loan has a maturity of 5 years and an interest rate of 1%. Once the PPP is approved and an SBA number is assigned funds are dispersed within 10 days. Repayment is deferred for 6 months.
The SBA relies on the disaster centers as a conduit to provide information for EIDL. In South Carolina, the SBA has approved 9,315 EIDLs totaling $664 Million and 59,492 loans in the amount of $5.6 Billion for PPP. There is no forgiveness for funds that are taken but not used for the 60%/40% appropriations, but there will be more direction coming from the US Treasury. There are no penalties for early repayment. Currently you can expect desk audits where vendors are to submit eligibility for the loans. Loans for less than $2 Million are less likely to be audited but you must justify a loss as the money is not free to the public.
Keep your eyes open for a new application to come out for small businesses in the next week, the banking industry will notify lenders. In addition to COVID-19 relief the SBA also grants assistance for the tornado impact from early 2020 through June 30. In addition, there have been no declarations and no indication of assistance needed for riot situations.
More information on other available loans and specific qualifications can be found at https://www.sba.gov/. You may also check www.treasury.gov/cares for documentation on the above changes to EIDL or PPP loans.
If you need help in completing applications the Small Business Administration encourages small businesses to contact https://www.scsbdc.com/ or https://www.score.org/, which have received funding to help.
The SBA office is available to help you find a loan officer or answer questions. Gregg White 803-765-5377 or Richard.firstname.lastname@example.org.