COVID-19 Update: SBA on EIDL Advances; Community Advantage Recovery Loans

Small Business Administration

The U.S. Small Business Administration’s Office of Inspector General has issued “Lender Alert: Economic Injury Disaster Loans,” which states the SBA no longer offers advances on Economic Injury Disaster Loans (EIDL) as of July 11, 2020. Until July 10, eligible small business owners in all U.S. states were able to request an advance of up to $10,000.

EIDL loans are still available. Lenders who have questions about eligibility or need to return money should contact SBA at eidl.ach.inquiries@sba.gov.

Lenders who suspect attempted fraud should contact the National Center for Disaster Fraud Hotline at 866-720-5721 or fill out the Web Complaint Form. Lenders may also report fraud, waste, abuse, or mismanagement of federal funds involving SBA programs, operations, or personnel to the SBA OIG Hotline at 800-767-0385. You can also submit a complaint form here.

Warning signs of fraud include using stolen identities to qualify for funds; applications from ineligible persons (nonbusiness entities, suspended or debarred individuals, etc.); fake businesses established specifically to apply for SBA assistance; borrowers working with third parties to obtain EIDL funds in exchange for keeping a percentage of the funds; borrowers using economic injury loan money to start businesses; misuse of loan funds; reporting inflated business and financial information; and borrowers declining loans after advance funds have been deposited.

Click here to read the Leagues’ Risk Alert.

SBA’s RFI on Community Advantage Recovery Loans

In case your credit union is a participant of the SBA’s Community Advantage Pilot Program, the SBA has published a request for information (RFI) and a notice on the establishment of a new, temporary Community Advantage (CA) loan product in response to the Coronavirus pandemic. The new loans — the CA recovery loans — will be made only under the CA Pilot Program and will be available to small businesses located in underserved markets. Click here and read more under the “Eligible Lenders” area.

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