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.
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.