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Good news for small business from the Economic Injury Disaster Loan Program

The Small Business Administration (SBA) has announced improvements to the COVID Economic Injury Disaster Loan (EIDL) program to better meet the needs of small businesses, and industries hit hardest by the pandemic. With the Delta variant, the struggle is far from over and many small businesses across the country are still in need of financial relief.  

The COVID Economic Injury Disaster Loan program is on of many SBA programs offering assistance to businesses in need. The program is a federal disaster relief loan designed to better serve and support our small business communities still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms, and hotels. 

SBA Administrator Isabella Casillas Guzman. (Photo Source)

“The SBA’s COVID Economic Injury Disaster Loan program offers a lifeline to millions of small businesses who are still being impacted by the pandemic,” SBA Administrator Isabella Casillas Guzman said in a press release

“We’ve retooled this critical program – increasing the borrowing limit to $2 million, offering 24 months of deferment, and expanding flexibility to allow borrowers to pay down higher-interest business debt. We have also ramped up our outreach efforts to ensure we’re connecting with our smallest businesses as well as those from low-income communities who may also be eligible for the companion COVID EIDL Targeted Advance and Supplemental Advance grants totaling up to $15,000.  Our mission-driven SBA team has been working around the clock to make the loan review process as user-friendly as possible to ensure every entrepreneur who needs help can get the capital they need to reopen, recover and rebuild,” Guzman continued. 

The SBA is ready to receive new applications immediately from small businesses looking to take advantage of these new policy changes.

Changes to the COVID EIDL program

The low-interest and long-term COVID EIDL program has helped millions of small business owners survive the impacts of the pandemic with its flexibility and affordability – allowing entrepreneurs to hire and retain employees, and purchase needed equipment and inventory.  

The SBA’s newest improvements will make the program even more flexible to meet the needs of struggling business owners. New improvements include: 

  • The SBA has increased the amount of funding that can be borrowed from $500,000 to $2 million for qualified applicants.  
  • The SBA has authorized COVID EIDL funds to be used to pay and prepay commercial debt and make payments on federal business debt in recognition of the financial reality many small businesses are facing during this crisis.
  • Small businesses will have time to recover from COVID-19 impacts by further deferring payments – up to two years after your loan origination date. 
  • Additionally, to help ensure the smallest businesses can access this crucial capital, the SBA has created a one-month exclusive window for businesses requesting $500,000. During this time, approvals and disbursements will focus 100% on loans $500,000 or less until October 8th, upon which approvals and disbursements will be opened up to all loan sizes.
  • Finally, to ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund.

You might be interested: How to still apply for Covid-19 Business Tax Credits ending Sept. 30

How to apply

Eligible small businesses, nonprofits, and agricultural businesses in all U.S. states and territories can apply. Visit www.sba.gov/eidl to learn more about eligibility and application requirements. The last day that applications may be received is December 31, 2021. All applicants should file their applications as soon as possible.

For additional information on COVID EIDL and other recovery programs please visit www.sba.gov/relief.

“As your SBA Administrator and a former small business owner myself, my goal is to make you, America’s small businesses, feel like the giants you are in our economy with programs that meet you where you are,” said Guzman.  

All business owners who have received previous loans through the SBA’s Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF), or Shuttered Venue Operators Grant (SVOG) can still benefit from COVID EIDL. For no-cost assistance for the COVID EIDL program, and every other SBA program, go to www.sba.gov/local-assistance and connect with a local resource partner near you.

fear of failure

4 Tips to overcome the fear of failure as a business owner

Fear of failure in your business is one of the most common feelings that prevent many potential entrepreneurs of growing their businesses and many others to even start a business dream. 

Camino Financial is a financial institution co-founded by Sean and Kenny Salas, children of a Latina entrepreneur who lost her business of 30 restaurants after 25 years of operation. Sean and Kenny have made the promise to never leave another Latino business behind.

by Guest Contributor Suanny Garcia

 

fear of failure

Sean and Kenny Salas with their parents at their HS graduation

You’ve accomplished launching a business and you’re now a small business owner and budding entrepreneur. Now that your business is stable, you can stop thinking about growth, right? Wrong.

Many small business owners are reluctant to grow their baby — using the term “baby” quite figuratively to illustrate a business that has not yet reached its full potential because it’s struggling from some serious attachment to its safe space. In reality, the correct term would be risk-averse, which quite literally means a disinclination to take risks. No entrepreneur is going to say building a business or creating a brand is fear-free, in fact, it’s quite the opposite… fear-full.

We all get it. Why fix what is not broken in the first place? Why increase your potential for failure when your current rate of success is not so bad? Well, when you’re not growing, you run the risk of staying behind, remaining stagnant, boring, passé, and eventually a thing of the past. In this social-network driven day and age when new technologies and marketing strategies are inundating buyers with the next new thing, it’s imperative you reconsider putting your fear on mute. As a business owner, you must learn to master the waltz of fear and possibility. That means, where there is no fear, there is even less possibility, and the reverse is also true: big fear almost always equals big possibility.

We’ll go over how important it is to invest, to fear big and fail fast, how you can measure your risk of investments, how to win from your business failures, but first… let’s talk simple steps on how to get over the fear.

fear of failure

Camino Financial team

4 Tips to Overcome the Fear of Failure as a Business Owner

    1    Imagine the worst, then let it go

Visualize the worst case scenario happening and then remove your thoughts from it. Accepting and removing the feeling of potential failurefrom your life will give clarity to your actions, inspiring every step to be imbued with a sense of optimism and good spirit — now that you’ve acknowledged what could go wrong, go right.

    2    Keep in mind: regrets are worse than failure

Regrets linger much longer and have much more weight than fear. If you’re reluctant to branch out because your fear of failure, imagine living with the perpetual weight of the doubt of never having reached further. If you’re reluctant to branch out because you fear for your family’s stability, there’s a chance down the line that your business might become stagnant as a result of your fear of growth.

3    Develop a culture of experimentation

If you’ve failed many times in the past, fail faster in your present. Numerous failed attempts certainly signify that you already know exactly what won’t work, which means you’re close to what will work.

    4    Accept inspiration

No, it’s not just a hoo-ha word artists use as an excuse to put off that new project “I’m not inspired today;” it’s science that you can make work to your advantage. Inspiration isn’t always everywhere, and won’t come every time you call for it…  sometimes you have to actively seek it.

Read about others who have accomplished the level of success you’re fearful of, or simply read about others who are successful regardless. Camino’s blog has several amazing resources that are sure to motivate:

How 3 Latinos Achieved the American Dream and Became Millionaires

How Dollar Shave Club Achieved A Billion Dollar Evaluation in Less Than 6 Years.

Now, let’s say we’ve finally crossed the bridge to the other side of fear, sided with the possibility rhythm of the waltz, became a growth experimenter… so now, what do you do?

You put your capital where your mouth is, and I’m not just referring to dentists. If you’re even considering growth, your business is probably stable and you’ve saved up some funds — or have investors backing you up — but regardless, you have the money to spare.

You might be interested: 

In The Importance of Working Capital, Camino Financial details exactly how you can use your funds to invest in your own company. New equipment? Check. New bathroom for your business? Check. New marketing team? Definitely, check (this is a huge factor for the growth of your business) — it took Jennifer López more than 10 years to become an overnight success.

 

This post was published on Camino Financial on June 24th, 2018.