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SBA Enhances COVID EIDL Program, Increase Loan Cap to $2 Million

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COVID EIDL $2 Million Increase

SBA Administrator Isabella Casillas Guzman announced significant enhancements to the COVID Economic Injury Disaster Loan (EIDL) program, a federal disaster relief loan designed to better serve and support our small business communities still reeling from the pandemic, particularly hard-hit sectors such as restaurants, gyms, and hotels.

The SBA said they are ready to receive new applications immediately from small businesses looking to take advantage of these new policy changes.

“The SBA’s COVID Economic Injury Disaster Loan program offers a lifeline to millions of small businesses who are still being impacted by the pandemic,” SBA Administrator Isabella Casillas Guzman said. 

“We’ve retooled this critical program – increasing the borrowing limit to $2 million, offering 24 months of deferment, and expanding flexibility to allow borrowers to pay down higher-interest business debt. We have also ramped up our outreach efforts to ensure we’re connecting with our smallest businesses as well as those from low-income communities who may also be eligible for the companion COVID EIDL Targeted Advance and Supplemental Advance grants totaling up to $15,000.  “

Guzman added: “Our mission-driven SBA team has been working around the clock to make the loan review process as user-friendly as possible to ensure every entrepreneur who needs help can get the capital they need to reopen, recover and rebuild.”

Key changes

  • COVID EIDL Cap Increased: The SBA will lift the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.
  • Deferred Payment Period Implemented:The SBA will ensure that small company owners do not have to begin COVID EIDL payments until two years following loan origination, allowing them to weather the epidemic without worrying about making ends meet.
  • 30-Day Exclusivity Window Established: COVID EIDL money can now be used to prepay commercial debt as well as make payments on government corporate debt.
  • Affiliation requirements Simplified: To make the COVID EIDL application process easier for small companies, the SBA has reduced affiliation criteria modeled after the Restaurant Revitalization Fund.

The improvements to the COVID EIDL program will provide more firms with better and more flexible support from the more than $150 billion in COVID EIDL funds available.

The SBA added that ” these changes will help entrepreneurs access capital at a time when, according to a recent Goldman Sachs 10,000 Small Businesses survey, 44 percent of small business owners report having less than three months of cash reserves, and only 31 percent reporting confidence in gaining access to funding.”

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GSS2 Stimulus Update: Chase, Wells Fargo Deposit Confirmed

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GSS2 Stimulus payment on Wells Fargo and Chase

Some people using Chase and Wells Fargo bank account have started to receive their golden state (GSS2) Stimulus payment.

The first payment was made on August 27 and consisted of 354 million dollars divided among 600,000 payments. Some Californians are already receiving the next round of payments.

“GSS II deposited this morning. Wells Fargo checking in.” A reddit user wrote alongside a screenshot of his payment on his bank account.

“Chase confirmed,” Another Reddit user wrote with a picture of the payment on a Chase bank account.

GSS2 Stimulus delay

The state of California have warned that some of the payments might be delayed as they “may need more review depending on the situation or information we have.”

“This could include address changes, bank account changes, etc,”.

Approximately two out of every three California residents are expected to receive a payment, with a total of $12 billion expected to be distributed to qualifying citizens. MARCA News reported.

These stimulus check payments are part of the state of California’s recently passed $100 billion budget, with governor Gavin Newsom claiming that the money is there to help those who have faced financial difficulties as a result of the pandemic.

The second round of these Golden State Stimulus payments is there to help low-income parents and self-employed workers.

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