Mississippi District Director Small Business Administration Janita R. Stewart said here in Mississippi, about 280 in and out-of-state bank and non-bank lending institutions participation in the first round of Payroll Protection Program making 20,784 loans for $2,481,000,606 billion to Mississippi businesses and non-profits.
“During round 1 of PPP, an astronomical number worth a total of 14 years of SBA loans were made in less than 14 days,” Stewart said. “Our agency is fully committed to ensuring that America’s workers and small businesses continue to get the resources they need to get through this challenging time.
She recommended that with an infusion of an additional $310 billion for round two of PPP underway, all eligible borrowers who need these funds should work with an approved lender to apply. She advises borrowers to carefully review PPP regulations and guidance and the certifications required to obtain a loan. Information is found online at www.sba.gov/paycheckprotection.
The U.S. Small Business Administration (SBA), in collaboration with the U.S. Department of the Treasury has two primary lending programs designed to assist small businesses and eligible private non-profit organizations in response to the COVID-19 disaster declaration. The first program that was rolled out is the Economic Injury Disaster Loan (EIDL) and the EIDL-Advance.
EIDL is a direct loan from SBA and is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by COVID-19 and is designed to provide vital economic support and help them overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic. The EIDL-Advance benefit will provide up to $10,000 of economic relief and does not have to be repaid regardless of a decision of approval or decline of the application.
As for statistics: As of 4/24/2020, agencywide, SBA approved 38,984 loans under EIDL for $7,967,174,888 and in Mississippi 140 loans for $30, 532,800. For the EIDL-Advance nationally, 1,192,519 for $4,805,897,000 have been approved, and in our state, 9,885 loans for $38,773,000 have been approved under this program.
In addition to that, SBA also offers two other avenues of assistance: Express Bridge Loans are available to small businesses that have a relationship with a SBA Express lender and may obtain up to $25,000. quickly for assistance; and the SBA Debt Relief wherein (outside of COVID-19 EIDL and PPP loans) SBA is providing automatic debt relief on regular 7(a) guaranty, 504 and Microloans that are in regular loan servicing status as well as loans made after 3/27/2020 that will be disbursed before 9/27/2020. Further debt relief via automatic loan deferments, is also provided to home and business disaster loan recipients (for example, from disaster-declared incidents including previous hurricanes, flooding, severe storms, etc.) whose loans were in regular servicing status as of 3/1/2020.
Stewart said the SBA is experiencing a high demand for assistance which underscores the need for hardworking Americans to have access to relief they need as soon as possible.
“SBA wants every eligible small business to participate and get the resources they need,” she said. “Potential applicants can obtain help in the application process from our SBA-funded resource partners including the Mississippi Small Business Development Centers at www.mssbdc.org SCORE – America’s Counselors at www.score.org and the Veterans Business Outreach Center (VBOC) at www.vboc.msstate.edu. Please reach out to these resources than can provide assistance free and confidentially.”
For more information on the COVID-19 funding programs visit www.sba.gov/disaster or contact the SBA Mississippi District Office or Gulfport Branch Office at 601-965-4378 or 228-863-4449.
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