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 announced today that the Louisiana Department of Insurance (LDI) continues its work to develop a regulation creating benchmark discounts for Fortified roofs in Louisiana. The LDI is working with the National Association of Insurance Commissioners (NAIC) to develop the benchmark discounts using Louisiana-specific data, hurricane modeling and actuarial considerations. “With over 11,000 Fortified roofs in Louisiana and two years-worth of insurer experience with rating for those roofs in our state, now is an appropriate time for the LDI to establish benchmark discounts for homeowners insurance companies operating in our market,” said Commissioner Temple. “These benchmarks are being thoughtfully developed to help consumers receive the discounts they deserve for fortifying their homes while making sure insurers know the benchmarks reflect how much Fortified roofs actually mitigate their exposure to risk across Louisiana.” Like in Alabama’s Fortified benchmark discount structure, the LDI regulation would require Louisiana insurance companies to either meet the minimum benchmark discount established by the LDI or provide actuarial justification for why the company’s discount does not meet the benchmark. Louisiana is the fastest growing state for Fortified roofs in America. To date, over 11,000 Fortified roofs have been installed in Louisiana, including over 4,100 through the Louisiana Fortify Homes Program.
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