Dear Booksellers, Today seems to be a tough day all around, especially for those of you who haven’t heard whether you’ll be receiving Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) funds, or those of you who heard that the funds ran out before you were funded. I asked ABA’s advocacy team to respond to questions today to get you answers and help you assess where you’re at: How do I find out the status of my applications? - To check the status of your PPP loan, ask your lender. You should not be contacting the Small Business Administration directly.
- Stage 1: Your lender has approved your application.
- Stage 2: Your lender has submitted an application to the SBA.
- Stage 3: The SBA has run checks on the application, approved the application, and sent a loan number to your lender. **If you are in this stage and your lender has received a loan number, you will be getting your loan money. Your loan is part of the initial $349 billion previously allocated**
- To check the status of your EIDL loan/grant, log into the SBA account you used to apply to check the status of your application.
If my loans were approved, how much longer will it take to receive my funds? - We don’t know. We’ve heard varying reports:
- So far, we haven’t heard from any stores that have received an EIDL grant.
- PPP funds were supposed to be distributed within 10 days, but we’ve heard from a few stores that received funds within 6 days of applying. Others are still waiting. One store followed up only to be told that their application was marked “incomplete” for an unknown reason and had fallen through the cracks, so it’s good to follow up with your lender.
Will there be additional funding for EIDL or PPP? If so, when? - There are reports that Congress is close to a deal that would replenish funding for PPP and EIDL. The deal, as it is currently being reported, would allocate $310 billion more into the PPP and $60 billion to the EIDL.
- We were in touch with the House and Senate Small Business Committees today and will continue to bring you updates as we learn more.
If I applied for the PPP loan and then the funds ran dry, do I need to do anything to still be eligible for the next round of funding? - It is our understanding that your application should still be in the queue. Being in the queue means you have a spot in line for when new funding becomes available. You should confirm this with your lender and ask them what stage of the process your application is currently in (see above).
If I haven’t heard back about my PPP or EIDL applications, what does that mean? - You should check the status of your applications.
- For information on your PPP application, contact your lender. If your lender has received a loan number from the SBA, you will be getting your loan money. Your loan is part of the initial $349 billion previously allocated. If not, confirm that your application is still in queue and that your lender does not require any additional information.
- For information on your EIDL application, log into the SBA account you used to apply.
What have other stores experienced with their PPP and EIDL loan applications? - Funds have been slow in reaching businesses. Thus far, we have not heard of any bookseller who has received the EIDL grant funds (please let us know if you have). We have, however, heard of a handful of stores that were approved for and have already received PPP funds. Other stores are still figuring out the status of their applications. The most frequent feedback we’ve received from members is, “Where’s the money?”
- If you have not done so already, please let us know about your experience with federal assistance at [email protected].
Should I still apply for EIDL if I haven’t yet? - Until EIDL is replenished, you are unable to apply for a COVID-19 related disaster loan.
Should I still apply for PPP if I haven’t yet? - Yes. Some lenders are still taking PPP applications even though the Small Business Administration is no longer approving them because the initial funds have been exhausted. Congress is expected to increase funding for the PPP. By applying now, you’ll secure a place in line for when funds are replenished. Find a PPP lender near you.
How do I apply for PPP if I’m a sole proprietor? - Sole proprietors, with or without employees, are eligible for PPP loans. This resource (starting on page 4) has good information about sole proprietors and the PPP, including how to calculate your loan amount and what eligible expenses are.
I’ve heard that I need to have at least 3 employees to be eligible for government relief. Is this true? - No, this is not true. One of the criteria for federal government relief is that you have 500 or fewer employees. There are private organizations offering grants that may have different eligibility criteria, such as a minimum number of employees.
I read something this weekend that said that those who do best under the worst conditions aren’t those who are hopeful, but those who are practical. On days like today, I recommend a little bit of both. Hopefully we’ll have some good news this week about a second round of relief. In the meantime, focus on what you can do to be in line for it, and work on the plan for what happens either way.
And whatever you need to figure it out, ABA is here for you. Please reach out if there is anything we can help with. We are an incredibly creative, resilient, supportive industry. We’ll get through this, together. Best,
Allison |
