The Restaurant Revitalization Fund (RRF) may again be funded if a bill passes the Senate. The bill, H.R.3807 – Restaurant Revitalization Fund Replenishment Act of 2021, was originally introduced in June 2021 by the House – Small Business committee. After a long period of time and important revisions, the bill was reintroduced and passed by the House of Representatives. The bill calls to replenish $42 billion into the RRF, which would be used to fund applicants that were in queue to receive funds until the program was paused.
The SBA was forced to stop providing funds due to a discrimination law suit, and then ran out of funds shortly after.
The SBA has added a 6-month deferment to COVID-19 Economic Injury Disaster Loans (EIDL). All COVID-19 EIDL loans will have the first payment due extended from 24-months to 30-months from the date of the Note.
La SBA agregó un período de aplazamiento adicional de 6 meses a su préstamo, lo que significa que la fecha de vencimiento del primer pago se extendió de 24 meses a 30 meses a partir de la fecha del préstamo.
Due to recent court rulings, the SBA will not be able to disburse Restaurant Revitalization Fund award at this time.
The Restaurant Revitalization Fund, enacted through the American Rescue Plan Act, prioritized applications from small businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals for the first 21 days of the program. After SBA launched the Restaurant Revitalization Fund, three lawsuits were filed challenging the 21-day priority application period—one in the Eastern District of Tennessee and two in the Northern District of Texas. These lawsuits have led to three court rulings that preclude us from disbursing award funds to you. SBA’s leadership is frustrated with this outcome and remains committed to doing everything we can to support disadvantaged businesses getting the help they need to recover from this historic pandemic.
In the coming days, SBA’s portal system will reflect that SBA will not be able to disburse your award. Specifically, you will see the status of your application in SBA’s portal change to “fully canceled.” This status change reflects only that SBA is not able to disburse your award.
SBA will continue to maintain your processed Restaurant Revitalization Fund application in its place in the application queue based on your date of application. If Congress provides SBA with additional money for the Restaurant Revitalization Fund, SBA will continue to process in the order received and fund applications as approved until the additional money is exhausted. You will not be required to submit a new Restaurant Revitalization Fund application.
It’s almost time to rid ourselves of this debt burden! Forgiveness applications for PPP loans received in 2021 will open soon. The forgiveness window for PPP loans obtained in 2020 opened earlier this year.
For businesses that obtained a loan with our help, we will be reaching out when it is time to apply for forgiveness. In some cases we are still waiting to receive an email from the loan processor in order to finalize the forgiveness process.
Economic Injury Disaster Loan (EIDL) from the U.S. Small Business Administration (SBA) were previously limited to six months of economic injury up to a maximum of $150,000. The SBA recently announced a policy change that significantly increases loan limits up to 24 months of economic injury with a maximum loan amount of $500,000.
For loan amounts over $25,000, SBA will continue to take a security interest in business assets evidenced by a general security agreement and UCC filing. SBA will also require an unsecured personal guarantee for loan amounts over $200,000 from any individual with 20 percent or more ownership. Real estate collateral will not be required for any loans of $500,000 or less.
Furthermore, the SBA announced that they are extending the first payment due date for all loans until 2022. For COVID-19 EIDL loans made in calendar year 2020, the first payment due date is extended until 24 months from the date of the note, and for loans made in calendar year 2021 the first payment due date is extended until 18 months from the date of the note. Loan interest continues to accrue during the deferment period, and a loan increase will not further extend your first payment due date.