EIDL and Paycheck Protection Program Temporarily Out of Funds
The Small Business Association (SBA) has announced the Paycheck Protection Program (PPP) is temporarily out of funds. Applications already approved by the SBA will still receive funds, and those submitted to the SBA website by their lender will still be processed. Lenders are signaling to clients they should continue to submit applications to be put in a “queue” for future processing. There is hope Congress will provide additional funds to this program in the coming weeks.
The SBA is unable to accept new applications at this time for the EIDL because the funding capacity has been reached. The SBA has not provided specific guidance as to when the application portal will be reopened, as it awaits more funding approval. Those who have already submitted their applications will continue to be processed on a first-come, first-serve basis. General guidance says applicants can expect to hear from a SBA Loan Officer 4-8 weeks after submitting their application. Once an application is approved, the advance is funded in as little as a few days to a few weeks.
Starting April 21st, the Pandemic Unemployment Assistance program will be taking applications for individuals and the self-employed. Those who are self-employed cannot receive both a PPP loan and unemployment insurance for the same period. Depending on the amount, it might be in your best interest to still file for PPP, if you haven’t already. Self-employed individuals should review both options and determine which would be more beneficial. The Wisconsin website indicates that unemployment benefits will be based on 1% of a self-employed individual’s 2019 net income. The minimum weekly benefit amount for unemployment is $163, and the maximum is $370 per week; an individual will receive this amount, plus an additional $600/week as per stipulations of the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
If you have questions regarding any of these programs, contact a KerberRose COVID-19 Trusted Advisor and check out our COVID-19 Resources. Also see the following Q&A regarding the EIDL and PPP:
SBA Economic Injury Disaster Loan Program Q&A:
Question: I have not yet submitted my application for the EIDL Program. Will the application portal open up again? If so when will that happen?
Answer: The SBA has not provided specific guidance, but it is likely the application portal will be reopened when the Federal Government approves additional funding for this program.
Question: I have submitted my application for the Economic Injury Disaster Loan through the SBA website, and I have an application number. Will the SBA still process my application?
Answer: Yes. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
Question: Is this the online form submission for the loan and emergency advance the complete application?
Answer: No. Additional documentation will be submitted through your SBA Loan officer including:
Question: Is there a way to find out when an SBA loan officer will contact me to complete the application submission?
Answer: At this point there is no way to get an estimated time frame for your specific application. General guidance is that you will hear from an SBA Loan Officer 4-8 weeks after your initial loan submission.
Question: I requested the Economic Injury Disaster Loan Advance. When can I expect to receive these funds?
Answer: The Economic Injury Disaster Loan Advance funds will be made available within days of a successful application. Ask your SBA loan officer about the timing for your Advance.
Question: How much money will I receive through the Loan Advance?
Answer: The Economic Injury Disaster Loan Advance is up to $10,000 but there is no specific guidance available today for how that amount will be calculated. Applicants have been receiving emails indicating the calculation is $1,000 per employee, up to $10,000. Ask your SBA loan officer about the dollar amount you will receive.
Paycheck Protection Program Q & A:
Question: I have not yet submitted my application for the Paycheck Protection Program. When will the applications start to be accepted again by local SBA Lenders?
Answer: The SBA has not provided specific guidance, but it is likely the application portal will be reopened when the Federal Government approves additional funding for this program.
Question: I have submitted my application forms to my local commercial lender. How can I find out the status of my application?
Answer: You will need to connect with your local lender regarding the status of your Paycheck Protection Program application status.
Question: I have not submitted my application forms to my local commercial lender. Should I continue to get my application ready?
Answer: Yes. We encourage you to get your application forms ready to submit to your local lender for when the Paycheck Protection Program starts accepting applications.