|From the National Retail Federation: |
The SBA has recently made some important changes to two of its key lending programs that have been critically important to small retailers during the COVID-19 pandemic.
The SBA recently announced the launch of a streamlined application portal that will allow PPP borrowers with loans of $150,000 or less to apply for loan forgiveness directly through the SBA. The SBA estimates that the streamlined portal will provide immediate loan relief to over 6.5 million small businesses. The platform will begin accepting applications on August 4, 2021. Lenders are required to opt-in to this program. The Direct Forgiveness Portal may be accessed here.
Additionally, the SBA is in the process of approving changes to the COVID-19 Economic Injury Disaster Loan (EIDL) program. This program provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. Unlike the PPP, the EIDL loan cannot be forgiven. However, the loan terms are advantageous for eligible organizations, with a fixed interest rate for 30 years and no pre-payment penalty or fees. The SBA will be expanding the EIDL loan cap from $500,000 to $2 million. Loans approved prior to April 7, 2021, for less than $500,000 are likely to be eligible to apply for additional funds.