As you may have seen in the news headlines today, the funds available to employers through the Economic Injury Disaster and Paycheck Protection loan programs have been depleted. The Small Business Administration (SBA) has posted the following notice on its website:
Lapse in Appropriations Notice: SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.
EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
So, what’s next?
Well, as with anything over the past several weeks, this is a rapidly changing situation. As of this writing, these are our suggestions:
If you have submitted an application but have yet to receive approval…
Call your bank. Call your bank. Call your bank. The SBA is continuing to process the applications already received so you may still get funding. But what’s not clear is what will happen to the applications that have already been submitted but are denied because funds have run out. The program was set up on a first-come, first-served basis. It does not appear as though the SBA is holding a queue so applications may need to be resubmitted if the funds are replenished.
If you are planning to submit an application but haven’t yet filed…
Complete your application and have it ready as soon as possible. You may even want to call or email your lender to let them know you’re planning to submit an application as soon as funds are available.
We will continue to monitor this situation and provide updates here as they become available. Visit our COVID-19 Resources Center to read other articles that may be helpful to your business.
This content was created during a snapshot in time and should be relied upon as such. Legislation and guidance continue to change as we progress through the current fluid environment and the information may not be applicable at a later date. All content and materials are for general information purposes only. If you have questions regarding your specific situation, please contact us.