PPP… EIDL… Was it enough?  Our clients said NO but SBA contends that there are Billions remaining? 

Are you eligible for what is remaining?  Still want to apply?  Time may be running out.

By Thomas W. Tramaglini,
BRP Onesta



We recently polled over 1,400 BRP Onesta clients who own one
or more small businesses.  Of the
responses we received, most (84.2%) were thankful of the PPP and EIDL programs,
and many (68.3%) said it was not enough.   

Perhaps the biggest recent barrier identified has been the
expansion of the EIDL loan – on our count, of the 1,487 business owners we received
results from, 1,299 said they had requested more funding as per the guidance of
the SBA and to date, 97.1% of our clients said they were either declined for
more funds, been told they needed to provide more documents, or that their
applications have been processing for months.
To date, only 2.9% of our clients have received additional EIDL funds.

What was successful?

The PPP program was certainly a move in the right direction

Since the beginning of the pandemic, small business owners
have taken advantage of several programs to help them get through the COVID-19
pandemic. For instance, as of December 20, 2021 there were 11,453,936
applications received by the Small Business Administration (SBA
Data Report
) for funding under the Paycheck Protection Program (PPP). Of
the over 11 million applications, over 79% of the applications were approved
amounting to funding of $791,420,024,727. To date, $662,273,930,930 of PPP
funds have been forgiven (83.6%) meaning the small business does not have to
return the funds which they borrowed. The majority of business owners who we
have spoken to say the funds were the right help at the right time. While there
were major hiccups in PPP funding along the way, clearly it has made a

However, many small businesses felt that the original first
and second draw PPP funds were not enough.
Many businesses did not get funded before the money ran out.  For instance, our company helped get our
clients more than $40MM of PPP funding but we still had over 100 clients who
were waiting in the queue within banks or the SBA because of wrong codes, poor
loan execution by the fintechs or banks, or some other unforeseen issue. In
some cases, our clients had to close their doors because they lacked the
capital needed for sustaining their business’.

So, what will 2022 bring?
The answer is… Who knows?  Last week,
the JP Morgan Chase CEO said that the pandemic would end in 2022.  Towards the end of 2020 and the earlier this
year we anxiously awaited the next round of Stimulus funding, which President Trump
signed into law and later President Biden took to funding to the next level
with a larger bill (American Rescue Plan).

However, still to date, many small business owners say that
it was just not enough.

What other types of funding are available?  According to the SBA…

o    EIDL loan
and Targeted Advance applications
 will be accepted until December 31
and will continue to be processed after this date until funds are exhausted.

o    Supplemental
Targeted Advance applications
 will be accepted until December 31;
however, the SBA may be unable to process some Supplemental Targeted Advance
applications submitted near the December 31 deadline due to legal requirements.
The SBA cannot continue to process Supplemental Targeted Advance applications
after December 31 and strongly encourages eligible small businesses to apply by
December 10 to ensure adequate processing time.

o    Borrowers
can request increases up to their maximum eligible loan amount for up to two
years after their loan origination date
, or until the funds are exhausted,
whichever is soonest.

o    The SBA
will accept and review reconsideration and appeal requests for COVID EIDL
applications received on or before December 31
the reconsideration/appeal is received within the timeframes in the regulation.
This means six months from the date of decline for reconsiderations and 30 days
from the date of reconsideration decline for appeals – unless funding is no
longer available.

What is still available?

“The COVID Economic Injury Disaster Loan (EIDL) and EIDL
Advance programs still have billions of dollars available to help small
businesses hard hit by the pandemic. More than 3.8 million businesses employing
more than 20 million people have found financial relief through SBA’s Economic
Injury Disaster Loans,” said Patrick Kelley, Associate Administrator
for SBA’s Office of Capital Access. 
“Key enhancements have been made
to the loan program that will help our nation’s businesses recover and get back
on track.”

In September, Administrator Guzman announced major enhancements to the COVID
Economic Injury Disaster Loan (EIDL) program. Key changes announced included:

o    Increased
The SBA lifted 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 off debt.

o    Implementation
of a Deferred Payment Period.
 The SBA will ensure small business
owners will not have to begin COVID EIDL repayment until two years after loan
origination so that they can get through the pandemic without having to worry
about making ends meet.

o    Establishment
of a 30-Day Exclusivity Window.
 To ensure Main Street businesses have
additional time to access these funds, the SBA implemented a 30-day exclusivity
window of approving and disbursing funds for loans of $500,000 or less.
Approval and disbursement of loans over $500,000 began after the 30-day period

o    Expansion
of Eligible Use of Funds.
 COVID EIDL funds are now eligible to prepay
commercial debt and make payments on federal business debt.

o    Simplification
of affiliation requirements.
 To ease the COVID EIDL application
process for small businesses, the SBA established simplified affiliation
requirements to model those of the Restaurant Revitalization Fund.

How to apply

Eligible small businesses, nonprofits, and agricultural
businesses in all U.S. states and territories can apply. Visit www.sba.gov/eidl to
learn more about eligibility and application requirements. The last day that
applications may be received is December 31, 2021. Applications received by
December 10 for Supplemental Advance will be processed in the order received
and the SBA cannot guarantee processing of all applications by December 31. All
applicants should file their applications as soon as possible to allow for
processing. For additional information on COVID EIDL and other recovery
programs, please visit www.sba.gov/relief.

Small business owners may call SBA’s Customer Service
Center 1-833-853-5638 (855-440-4960 for the deaf and hard-of-hearing) or
email DisasterCustomerService@sba.gov for
additional assistance. The center is open Monday through Friday from 8 a.m. to
8 p.m. EST. Abbreviated hours will be observed during the Thanksgiving holiday
(closed on Thanksgiving Day; open Friday, November 26 – Sunday, November 28
from 9 a.m. to 5 p.m. EST). Multilingual representatives are available.

Small business owners may also contact SBA’s Resource
Partners by visiting www.sba.gov/local-assistance.


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