Capitol Correspondence - 05.19.20

​SBA Restricting Access to Non-PPP Economic Injury Loans

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Because ANCOR members have turned to a range of loans to sustain their operations during the COVID-19 pandemic, we are sharing this article from ASAE on the Economic Injury Disaster Loan (EIDL) program. ANCOR is a member of ASAE, which is the association for associations.

“The Economic Injury Disaster Loan (EIDL) is a longstanding SBA program that pre-dates the COVID-19 pandemic and is separate from the popular Paycheck Protection Program (PPP), which is run by private banks and authorized by the SBA. Through the CARES Act, struggling small businesses with fewer than 500 employees were able to apply for an emergency EIDL advance of up to $10,000 within three days of applying that would not have to be repaid.

Staring at a backlog of millions of new EIDL applications, on May 4, the SBA announced it would limit new EIDL loans to agricultural businesses only. Now, after initially telling businesses they could access up to $2 million through EIDL, the SBA has quietly imposed a $150,000 limit, according to the Washington Post.”