SBA extends deferment period for Economic Injury Disaster Loan program bizjournals.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bizjournals.com Daily Mail and Mail on Sunday newspapers.
WASHINGTON, D.C. – The U.S. Small Business Administration announced extended deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022.
All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 24-months from the date of the note.
All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.
Existing SBA disaster loans approved prior to 2020 in regular servicing status as of March 1, 2020, received an automatic deferment of principal and interest payments through December 31, 2020. This initial deferment period was subsequently extended through March 31, 2021. An additional 12-month deferment of principal and interest payments will be automatically granted to these borrowers. Borrowers will resume their regular payment sch
Friday, March 12, 2021
The hospitality industry has been hit especially hard during the COVID-19 pandemic, but there is assistance in sight for struggling restaurants and bars. On March 11, President Joe Biden signed into law the American Rescue Plan Act of 2021 (Act), a $1.9 trillion stimulus bill that includes $28.6 billion for a Restaurant Revitalization Fund (RRF).
Title V, Section 5003 of the Act authorizes the Small Business Administration (SBA) to make grants of up to $10 million in the aggregate ($5 million in the aggregate per location) to eligible entities and their affiliated businesses to cover pandemic-related losses.
What Businesses Are Eligible for RRF Grants? Eligible entities are broadly defined as businesses where the public or patrons assemble for
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At $1.9 trillion, the American Rescue Plan Act of 2021, signed into law by President Biden on March 11, 2021, is the largest aid package passed by Congress since the start of the pandemic. With the Rescue Act, Congress hopes to provide further assistance to businesses and individuals experiencing financial hardship due to COVID-19. Although many components of the Rescue Act are aimed at providing cash flow to small businesses, other provisions will increase taxes for certain large businesses.
Key Takeaways for Businesses & Their Owners
Revenue Raisers
Deductibility of Excess Business Losses: The 2017 Tax Cuts and Jobs Act (the TCJA) limited non-corporate taxpayers’ ability to deduct excess business losses the excess of the aggregate business gross deductions over aggregate business gross income to $250,000 per year (or $500,000 for joint filers), with unused excess business losses carried forward as net operating lo
Who Is an Eligible Entity?
A restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink; including an entity located in an airport terminal or that is a Tribally-owned concern.
Who Is Not an Eligible Entity?
An entity described above that:
Is a state or local government-operated business;
As of March 13, 2020, owns or operates (together with any affiliated business) more than 20 locations,