By Ken Martin, The Austin Bulldog
Also: The SBA’s streamlined loan application process will grant cash advances up to $10,000 that don’t have to be repaid
Yesterday the U.S. Department of Housing and Urban Development (HUD) approved the City of Austin’s request to use some $5.7 million in Section 108 funds already on hand to make Economic Injury Bridge Loans. The City will begin taking applications Monday. (More about that later.)
In other welcome news, the U.S. Small Business Administration (SBA) has streamlined the application process for a COVID-19 Economic Injury Disaster Loan (EIDL)—including an advance of up to $10,000 that does not have to be repaid.
The SBA’s EIDL program is open to a wide variety of businesses, sole proprietors, independent contractors, cooperatives, employee stock ownership plans (ESOPs), tribal small business concerns, and nonprofits—including faith-based organizations. All must have 500 or fewer employees to qualify.
“The estimated time for completing this entire application is two hours and 10 minutes,” the SBA instructions state, “although you may not need to complete all parts.” The SBA is relying upon self-certification of eligibility by applicants who must complete applications under penalty of perjury. Two local business owners, both sole proprietors, interviewed by telephone today said they applied Monday, and both said it took less than a half-hour. The online application process provided an on-screen identifying number when completed but neither have received an email confirmation or been contacted for more information.
City’s bridge loan applications open Monday
The Austin City Council on March 26, 2020, approved the bridge loan program designed to provide working capital to both for-profit businesses and nonprofit organizations. The Austin Bulldog published extensive details about the program that same day. READ MORE.