From The Business Journal, see this article below:
Exclusive: SBA’s EIDL Program Depletes Remaining Funds
The Small Business Administration’s $345 billion Economic Disaster Loan Covid-19 relief program has exhausted its remaining funds, SBA Administrator Isabel Guzman confirmed in an exclusive interview with The Playbook. Thursday afternoon.
The popular loan program officially closed to new applications at the end of 2021, but small business owners who had already received funds were able to apply for additional amounts. Small business owners who were already going through the reconsideration process could also be approved as long as funds were available.
But that time is over.
“Now there (are) no more requests for additional funds.” Guzman said. “Funds have run out.”
Will approved SBA EIDL borrowers receive their funds?
Business owners who have already been approved should receive funds, but the agency will not be taking any more applications, Guzman pointed out.
The agency had approved more than 3.9 million EIDL program loans for about $378 billion as of April 28, according to SBA data – a total higher than the program’s price of $345 billion, as some companies do not haven’t accepted all the money they’ve been approved for. for.
Guzman told a recent congressional hearing that the agency plans to switch from providing EIDL Covid-19 loans to servicing them. The agency’s budget request for fiscal year 2023 includes transferring $320 million of funds originally earmarked for the $10,000 Targeted EIDL Cash Grant for Small Business Owners to sustaining and serving millions of EIDL loans it has made over the past two years.
The depletion of program funding marks the end of one of the few remaining Covid-19 relief programs passed by Congress in 2020 and 2021, alongside the Paycheck Protection Program, the Carrier Grant Program closed sites and the restaurant revitalization fund.
For companies hoping to tap into remaining funds, the timing of funding exhaustion is not ideal. Inflation has quickly become the biggest challenge for small business owners, and it is holding back their growth opportunities.
Will there be more Covid-19 relief funds?
Congress is squabbling over a possible new wave of small business grants, including legislation to replenish the popular but underfunded RRF. The $28.6 billion RRF was created in March 2021, but the Small Business Administration shut it down on June 30 after funding ran out.
The House has already passed HR 3807 or, the Hard-Hit Restaurant and Other Small Business Relief Act of 2022, which would provide approximately $42 billion to provide new funding to the RRF and an additional $13 billion to create a relief program. industry-neutral relief. small businesses that have seen their revenues plummet due to Covid-19.
If the legislation passes both chambers, both chambers will either have to agree on compromise legislation or one chamber will have to pass the bill of the other in order to send it to President Biden for his signature. However, a number of obstacles remain before this legislation becomes law.