COVID-19 Relief Updates: New PPP Deadline, Increased EIDL Maximum Loan Amount, and Available Grants
This week, the U.S Small Business Administration (SBA) announced a deadline extension for the Paycheck Protection Program (PPP), an increase to the Economic Injury Disaster Loans (EIDL) maximum loan amount. Further, we are spotlighting two small business grants by KKR and the U.S Chamber of Commerce. Read below for more information on the changes to EIDL and the PPP and potential grants for your small business.
The deadline to apply for a Paycheck Protection Program forgivable loan was extended to May 31st, 2021 in order to allow more small businesses to take advantage of this program. It was also announced that the SBA will have an additional 30 days after May 31st to review any pending loan applications.
The Paycheck Protection Program extends loans to provide an incentive for small businesses and non-profit organizations to keep their workers on the payroll. Importantly, SBA will forgive the loans if the full-time headcount remains the same for eight weeks and the loan funds are used for payroll, and other designated operating expenses.
Increased maximum loan amount for Economic Injury and Disaster Loan
Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program to 24-months of economic injury working capital with a maximum loan amount of $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.
KKR has launched Small Business Builders Fund in partnership with Hello Alice to provide COVID-19 recovery grants of up to $10,000 to selected small businesses. To be eligible, a business must have:
between 5 to 50 employees
less than $7 million in annual revenue
demonstrated need for support
a strong plan for moving forward
and be in good standing with the IRS or local regulatory body
Priority is given to businesses operating in underrepresented groups and/or providing important community services. Deadline for this round is April 7, 2021. For more information on private sector grants, check out the Pace SBDC’s grants page.
The U.S Chamber of Commerce's Annual Dream Big Awards program gives small businesses the chance to win a $25,000 cash prize and one-year paid U.S Chamber of Commerce Membership for the Small Business of the Year Award.
To be eligible, businesses must be operating for at least one year primarily within the United States and have less than 250 employees OR have gross revenues of less than $20 million in 2019 and 2020. The deadline to apply is July 16, 2021.