Millions of companies benefited with resources to recover from the pandemic
Close to $400 billion was approved for economic injury and disaster loans due to COVID-19.
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Isabel Casillas Guzmán, Administrator of the Small Business Administration (SBA), highlighted the great benefits that have been obtained thanks to the approval of resources for nearly $390 billion from the Economic Injury Disaster Loan (EIDL) due to COVID, which have served in the recovery tasks of almost four million small businesses and non-profit organizations.
The SBA has delivered historic economic relief to millions of America’s small businesses through the COVID Economic Injury Disaster Loan program.
Allies of America's Small Businesses
According to SBA figures, in the first three quarters of 2021, small businesses with fewer than 50 employees created 1.9 million jobs.
“It is the fastest nine-month start in any year on record. This historic level of investment in saving our small business economy has resulted in high marks of trust in the SBA among the American public,” highlighted the SBA.
Among the financing tools that have helped companies boost their economic growth, the programs of the American Rescue Plan, such as the Restaurant Revitalization Fund, the Shuttered Venue Operators Grant, the COVID EIDL Targeted and Supplemental Advance Grants, and the Paycheck Protection Program — COVID EIDL, which was often used for critical business operations, such as making payroll.
“President Biden believes we can deliver government services and ensure critical relief gets into the hands of those who need it the most with equity, speed, and certainty. We delivered on his vision by revamping the COVID EIDL program to expand the delivery of low-interest, flexible loans to meet the continued needs of small businesses for financial relief so they could recover. At the same time, we enhanced anti-fraud measures to protect taxpayer dollars and ensure that funds benefited those Congress intended to help. Nearly 90 percent of loans went to small businesses with 10 employees or less, which tend to include the hardest-hit and most underserved populations. The hardworking team members of the SBA and the Biden-Harris Administration will continue to use every tool at their disposal to support small business owners,” underlined Guzmán.
- A backlog of over a million applicants was eliminated, reducing application processing to an average of two to three weeks, which is faster than industry timelines.
- Under streamlined processes, the SBA processed $1 billion in relief for 50,000 small business owners per day at peak stages, dwarfing the processing volumes of the world's largest financial institutions.
- To ensure smaller businesses had additional time to access these funds, the SBA implemented a 30-day window of exclusivity to approve and disburse funds for loans of $500,000 or less, after the limit was increased to $2 million.
- Raised the COVID EIDL loan limit to $2 million for eligible applicants. Loan funds can be used for any normal operating expenses and working capital, including payroll, equipment purchases, and debt payments.
- To help small businesses struggling to make ends meet, the SBA has established extended deferred payment periods so that small business owners do not have to begin paying the COVID EIDL until 30 months after loan origination.
- Recognizing the importance of principal flexibility, the SBA made the COVID EIDL funds eligible for prepaying business debt and for federal business debt payments.
- To ensure that federal aid dollars reached the small businesses Congress intended to help, the SBA instituted anti-fraud measures, including IRS-verified tax returns and checking Treasury’s Do Not Pay List.
Small business owners still seeking assistance can participate in the Community Advantage loan guarantee program, 7(a) and 504 loan programs, or connect with their local SBA field office to connect with a SBA lender that can best meet your capital needs and/or a Community Navigator to connect to additional small business resources.
Click here for additional information on SBA funding opportunities.