This week saw three significant developments related to Small Business Administration (“SBA”) programs designed to help businesses overcome the lingering effects of COVID-19.
First update – and update from our previous one alert – Following successful advocacy from industry voices such as the Independent Restaurant Coalition, the SBA confirmed this week, via Twitter, that it will not require applicants for the $ 28.6 Billion Restaurant Revitalization Fund (the “RRF”) to obtain a Dun and Bradstreet number (a “DUNS number”) or register with the Federal Rewards Management System (SAM.gov), which is good news even though it comes after many applicants have already started this process. Since the SAM.gov registration would have taken two weeks or more, it has been reported as a significant burden on applicants, especially when considered under the three week priority period for small businesses. socially and economically disadvantaged. While the SBA’s website has yet to be updated to reflect additional guidance from the RRF, testimony provided at last week’s Senate Small Business Committee hearing indicated that the SBA is planning to roll out the details of the program in the coming days. A targeted deployment, aimed primarily at candidates in the priority phase, should follow in the coming month.
On the Paycheck Protection Program (“PPP”) Front – On Tuesday, March 30, President Biden enacted the PPP Extension Law of 2021, which extends the application period for PPP loans until May 31, 2021. The President declared that nearly 90,000 applicants are still seeking funding; and that the extension will allow time for the remaining available funding to be allocated to US small businesses in the coming months.
Finally, a small but important update from the SBA has emerged regarding the SBA Economic Disaster Loan Program (“EIDL”). The EIDL limit for loans approved during the week of April 6, 2021 and thereafter will be increased to 24 months of economic harm up to $ 500,000 (from the current limit of $ 150,000). The SBA has confirmed that it will contact some recent borrowers to provide details on how to request an increase in their existing EIDLs, and that applicants who previously accepted EIDL funds at an amount less than the total amount initially offered may continue to apply. request additional funds for two years after the date of their original loan.