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.
Association emphasizes lower monthly expenses, more housing options and practical relief for Louisiana families.
Want Your Teen to Own a Home Someday? Start Talking Money Now Teens may not be thinking about mortgage rates or down payments just yet, but the money habits they’re building now can follow them for years. And 88% of teens surveyed by Fannie Mae and Junior Achievement said they want to own a home someday. This week’s Consumer Guide: Talk to Your Teens About Money and Homeownership makes those conversations a little easier, covering everything from credit scores and budgeting to debt, renting versus owning and saving for that eventual down payment. So yes, you may have to interrupt the doomscrolling. But helping teens get smarter about money today could put them in a much better position to get the keys to a home of their own down the road. Download all of NAR’s Consumer Guides in English or Spanish at facts.realtor. For ease of reference, below is a list of the most recent guides: NEW: Teen Financial Literacy Fraud Red Flags Helping Family Members Become Homeowners Prepare Your Home for Hurricane Season Condominium Insurance Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. The next Consumer Guide, scheduled for publication on Oct. 21, will cover winter cold and storm preparedness.
Homeownership Is on Louisiana's November Ballot
