PPP deadline now May 31, EIDL funding expanded, loan terms extended
Navigating Covid-19 relief loan application processes can be complicated, but there is good news: The deadline for small businesses to apply for forgivable loans through the popular Paycheck Protection Program (PPP) has been extended until May 31, the Economic Injury Disaster Loan (EIDL) program has been greatly expanded, and loan repayment terms have been extended.
“These changes will enable more small businesses to apply for the assistance that they need because of the economic impact of the pandemic,” said Victor Hoskins, president and CEO of the Fairfax County Economic Development Authority (FCEDA). “Obtaining additional funding may be the lifeboat they need to continue to bridge this crisis.”
Do you have a Fairfax County business and need assistance applying for pandemic relief programs? Contact Karen Smaw, the FCEDA’s director of business diversity investment and entrepreneurship, at email@example.com for information on free or low-cost counseling and mentoring resources, including through the Community Business Partnership, the George Mason University Small Business Development Center and SCORE, a non-profit resource funded by the SBA.
In addition, the FCEDA is partnering with the Northern Virginia Pro Bono Law Center and Start Small Think Big on the COVID-19 Pro Bono Collaborative, an initiative to provide free legal assistance to small businesses in Northern Virginia during the COVID-19 pandemic, including help with federal assistance, grant and loan programs, as well as leases and employment issues.
“We are here at the FCEDA to help small businesses find the assistance they may need,” Smaw said. “Small businesses, especially minority-, women-, and veteran-owned, have been severely harmed because of Covid-19. These programs will help keep companies such as these survive.”
Need to know PPP, EIDL changes
Paycheck Protection Program: The SBA established a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees. This gives lenders and community partners more time to work with the smallest businesses to submit their applications, while also ensuring that larger PPP-eligible businesses still had plenty of time to apply for and receive support before the program expires on May 31. The SBA also made four additional changes to open the PPP to more underserved small businesses.
Under the terms of the PPP Extension Act, which had bipartisan support and was signed into law by President Biden on March 30, the Small Business Administration also has an additional month — through June 30 — to process the applications.
As of Sunday, the program has approved more than 9.1 million loans totaling nearly $746 billion since it was created last year, according to SBA data. Fairfax County businesses received $2.9 billion in funding in the first draw of the PPP.
And through the American Rescue Plan Act, another $7.25 billion has been added to the PPP, including eligibility to additional nonprofits and digital news services.
Economic Injury Disaster Loan: An additional $15 billion has been added for Economic Injury Disaster Loan (EIDL) advance payments, including a new $5 billion for supplemental Targeted EIDL Advance payments for those hardest hit. The SBA increased the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 EIDL program. As of Tuesday the maximum loan has risen to $500,000 for up to 24 months of economic injury from $150,000 for six months of economic injury.
Businesses that receive a loan subject to the current limits do not need to submit a request for an increase. The SBA is reaching out to provide more details about how businesses can request an increase. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic injury up to a maximum of $500,000.
This new relief builds on the SBA’s March 12 announcement that it would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022.
Shuttered Venue Operators Grant: Additional funds have been allocated for the Shuttered Venue Operators Grant (SVOG) program, which provides emergency assistance for eligible venues affected by COVID-19. Businesses are now allowed to apply for both a PPP loan and the SVOG. The application portal for the SVOG opens today.
Restaurant Revitalization Fund: $28.6 billion has been allocated for the Restaurant Revitalization Fund for grants to restaurants, bars and related industries. The application process for the program is expected to be available later this month, according to the SBA.
Community Navigator pilot program: $100 million has been allocated to establish a Community Navigator pilot program. Grants will go to eligible organizations supporting efforts to improve access to COVID–19 pandemic assistance programs and resources. The SBA will engage with states, local governments, resource partners and other organizations in targeted outreach for small businesses in underserved communities.
Fairfax County government resources
Visit the Fairfax County Government’s “COVID-19 for Businesses, Organizations and Employees” web page for information on employer/worker resources, local small business resources, key business-related updates and vaccine information.
- COVID-19 relief options
- American Rescue Plan Act
- COVID-19 recovery information in languages other than English
- Guidance for businesses and employers
- Additional SBA resources
April 8, 2021