The Small Business Administration (SBA) is giving entrepreneurs who took Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) a break on paying them back.
“Small business borrowers in delinquency or default who take action and obtain good standing with the SBA will improve their long-term financial health substantially,” the agency said in the release. “The benefits of getting, and staying, current on SBA loans include better credit scores, which make it cheaper and easier to buy a home or car in the future; eligibility for future government financial assistance, like a VA loan or help after a natural disaster; and, in some cases, avoidance of federal and private collections activities which can include withholding tax returns and wage garnishment.”
If borrowers are unsure if their loan has been forgiven, they can log into the MySBA loan portal, where borrowers can see all of their SBA loans, including PPP loans, and the status of each loan. For PPP loans, the status will show “paid in full” if the PPP loan has been forgiven. The agency’s website also provides information on how to apply for forgiveness, which borrowers should do immediately if they have not already.
Earlier this month, the Biden administration announced it would begin pursuing business loans that were distributed during the COVID-19 pandemic after initially announcing that the federal government would not pursue small businesses that had withdrawn funds under the COVID-19 Economic Injury Disaster Loan program.
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Source: Black Enterprise
