SBA to Increase Lending Limit for COVID-19 Economic Injury Disaster Loans –
ON MAR 24, 2021
The U.S. Small Business Administration is increasing the maximum amount small businesses and non-profit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. Starting the week of April 6, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.
“More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses. However, the pandemic has lasted longer than expected, and they need larger loans. Many have called on SBA to remove the $150,000 cap. We are here to help our small businesses and that is why I’m proud to more than triple the amount of funding they can access ,” said SBA Administrator Isabella Casillas Guzman.
Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time. SBA will reach out directly via email and provide more details about how businesses can request an increase closer to the April 6 implementation date. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic injury up to a maximum of $500,000.
This new relief builds on SBA’s previous March 12 announcement that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to offer more time for businesses to build back. In order to shift all EIDL payments to 2022, SBA will extend the first payment due date for disaster loans made in 2020 to 24-months from the date of the note and to 18-months from the date of the note for all loans made in the calendar year 2021.
Questions about SBA COVID-19 EIDL and disaster loan payments can be emailed to DisasterCustomerService@sba.gov or directed to SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).
Economic Injury Disaster Loan
More than 94 Downtown Metuchen businesses have qualified for $6,510,100 of Economic Injury Disaster Loans through the Small Business Administration (SBA). The cap of $150,000 has now been increased to $500,000.
Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time. SBA will reach out directly via email and provide more details about how businesses can request an increase closer to the April 6 implementation date. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic injury up to a maximum of $500,000.
This new relief builds on SBA’s previous March 12 announcement that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to offer more time for businesses to build back. In order to shift all EIDL payments to 2022, SBA will extend the first payment due date for disaster loans made in 2020 to 24-months from the date of the note and to 18-months from the date of the note for all loans made in the calendar year 2021.
Questions about SBA COVID-19 EIDL and disaster loan payments can be emailed to DisasterCustomerService@sba.gov or directed to SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing).
Source: New Jersey Business Today, March 24, 2021.
Paycheck Projection Program
The Paycheck Protection Program has brought $4,455,715 to 134 businesses in Downtown Metuchen. This week the US Senate voted to approve the PPP Extension Act of 2021 extends the deadline from March 30 to May 31. Many MDA volunteers and business owners are well versed in the program and happy to help you. Please contact isaac@downtownmetuchen.org and we’ll connect you with someone who can help with applying. Source: Journal of Accountancy, March 25, 2021.
Metuchen High School Class of 2021 – Blue Salute
While COVID-19 has changed the senior year for students, shining blue lights at homes and in businesses has been encouraged. Choose your own lights and design. Just make them bright and blue. Lights can shine through graduation, June 15, or on the 21st of each month. Let’s show our support for the MHS Class of 2021 by lighting the downtown blue!
HoMe (Humans of Metuchen) Campaign – Our HoMe campaign is modeled from HoNY (Humans of New York) as a way to share the stories and the people behind our local businesses. Participation requires a completion of our questionnaire and 30 to 60 minutes of photography time at your business. Please fill out the questionnaire to participate; this will be an on-going campaign.
“Metuchen, You’re Gonna Love it Here!” Campaign – Postcards (sample below) will be distributed to realtors and leasing agents to hand out to prospective residents to get the familiarized with Downtown Metuchen and its businesses. The QR code will lead you to a page of offers. Please share your offer (10% off $50 or more, buy one get one half off, 10% for new customers etc.); this will be an ongoing campaign and offers can be refreshed as needed. Email info@downtownmetuchen.org to participate.
