This morning, SBA announced that it is no longer accepting applications for its COVID-related loans due to a lapse in funding. The funds set aside for SBA’s Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) ran out in just a few weeks after launch.
Despite this disappointing news, there is still hope. For one, there's a good chance more funding will become available. Treasury Secretary Steven Mnuchin last week asked for $250 billion in additional funding for PPP, and reiterated this call in a joint statement released late last night with SBA's Jovita Carranza. Lawmakers from both parties have shown support, though negotiations remain in the early stages. With unemployment rates not seen since the Great Depression, many speculate that it’s only a matter of time before Congress will approve more funding for PPP, and perhaps for EIDL as well. In light of this, we suggest preparing loan information and applications now, if possible, to be ready for the likely possibility that SBA will begin processing applications again. (For more in-depth guidance, read COVID-19 FAQ for Cooperatives.)
In the meantime, we urge cooperatives and nonprofits to look to other sources of funding, including 0% interest or “patient” loans from local government. For example, San Francisco, Oakland, and Berkeley have launched COVID-19 relief efforts. These programs don’t get as much press as the SBA's forgivable loan programs, and may still have funds available - or may also get new rounds of funding. Finally, you can find a list of other funding opportunities available in the NoBawc’s Mutual Aid Document (funding opportunities listed under “General Resources” tab).
Questions? Email [email protected].