Interview with SBA Director on EIDL Applications & EIDL Repayment Tips
Today our CEO Ryder spoke with SBA Director of Preparedness, Communication, and Coordination in SBA's Office of Disaster Assistance Alejandro Contreras. Mr Contreras spoke about the new chapter of EIDL repayments, outstanding EIDL reconsiderations, and the EIDL testimony earlier in the week with Patrick Kelly of the SBA. Below is the full video interview with notes below.
On EIDL Outstanding Applications
Mr Contreras discussed the EIDL testimony from Patrick Kelly, who's in charge of the SBA Office of Capital Access from Tuesday August 2nd. In this testimony, Mr Kelly shared that around 41,000 EIDL reconsiderations were fully reviewed and they won't be able to "get to a yes" on those applications for various reasons.
Mr Contreras also emphasized this point — and the point that funding for the EIDL program is not an issue for anyone who's "stuck". In most cases this is due to tax issues (exacerbated by the historical requirements of the EIDL program).
On the History of the EIDL Program
Mr Contreras talked about the beginning of the COVID EIDL program in March 2020 and how the rules and policies have changed throughout the new administration — namely, increasing the working capital amount to 24 months, allowing first an increase to $500,000, then an increase for up to $2M.
Mr Contreras also discussed the unprecedented number of EIDL applications — and for the first time it was revealed that there were around 21 million total EIDL applications.
On EIDL Repayment
Mr Contreras talked about the coming EIDL repayments, since EIDL payments have been deferred for 30 months from loan origination date. That means many loan borrowers will have their first payments due in October, November, and December of this year.
The SBA is working on communications for repayments as well as technological improvements. You can go to sba.gov/pay to login to the current SBA system, or alternatively EIDLpay.com
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