SBA Announces Changes to EIDL Loans and Advance Grants
LOUISIANA REALTORS • April 14, 2020
Source: https://www.nar.realtor/political-advocacy/coronavirus-sba-cares-act-faqs
A SBA Economic Injury Disaster Loan is a low-interest loan for small businesses that experience economic hardship as the result of a declared disaster, including the COVID-19 pandemic.
The limit on these loans was originally $2 million, with a $10,000 advance which would be distributed within 3 days of application. The $10,000 would be forgivable if utilized for proper purposes.
However, the SBA recently announced a change to how it will administer EIDLs and the advance grants. In order to meet the high demand and provide funds to the greatest number of applicants, the SBA is reducing the cap on the loans from $2 million to $15,000, and the advance grants will be $1,000 per employee, capped at $10,000.
EIDL loans can still be used to provide paid sick leave to employees unable to work due to COVID-19, maintaining payroll, meeting increased costs due to supply chain disruptions, rent or mortgage payments, and repaying debt obligations. As of Tuesday, April 14, 2020, at 12:50 p.m., it is still our understanding that the advance grant is forgivable.
NAR has expressed concern that this dramatic change in the implementation of the programs will reduce their usefulness for many small businesses and disproportionately impact independent contractors who do not have employees. NAR has voiced this concern to Congress and urged them to provide additional funding to the SBA loan programs in future COVID-19 relief bills to ensure that the programs can provide adequate funding and assistance to businesses in need during the crisis.
As conditions continue to change, Louisiana REALTORS® will confirm these changes and update this site. We encourage you also to visit nar.realtor for updates.
From the Louisiana Department of Insurance: Insurance Commissioner Tim Temple joined Governor Jeff Landry and Senate Insurance Committee Chairman Kirk Talbot today to announce that Louisiana is investing an additional $20 million in Fortified homes, bringing the total amount invested in state Fortified projects this year to $100 million. Governor Landry announced that $20 million from the U.S. Department of Housing and Urban Development will be transferred to the Louisiana Office of Community Development Restore Resilient Opportunities for Overhead Fortification (Restore ROOF) program to strengthen residential structures and reduce long-term disaster risk. Earlier this year, the Legislature passed a bill that allows $50 million in additional Katrina and Rita bond money from Louisiana Citizens Property Insurance Corporation to be added to the Department of Insurance’s Louisiana Fortify Homes Program (LFHP). Also beginning this year, LFHP is projected to receive approximately $30 million annually from taxes and fees the Louisiana Department of Insurance collects from the insurance industry. “Building stronger homes is a vital part of making homeowners insurance affordable in Louisiana,” said Commissioner Temple. “I appreciate Governor Landry’s leadership and support as we work with legislators like Chairman Talbot to make Louisiana a national leader in the adoption of Fortified roofs.” The Louisiana Department of Insurance (LDI) has finalized its promulgation of Regulation 136—Fortify Homes Premium Discounts. The purpose of Regulation 136 is to implement the statutory provisions set forth in La. R.S. 22:1483, et seq. , which require that all Louisiana property and casualty insurers provide premium discounts or insurance rate reductions for homes constructed or upgraded in accordance with the fortified standards created by the Insurance Institute for Business and Home Safety. View Regulation 136 here .
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