SBA halts recovery loan programs for businesses
SANTA BARBARA, Calif. - The City of Santa Barbara received a notice on Thursday that the Small Business Administration (SBA) will no longer be accepting any more applications for Pay Check Protection Program and Economic Injury Disaster Loans distributions due to a lack of funding.
SBA said more money for these programs may be approved by Congress, but this is not confirmed.
However, applications that have already been received for both programs will still be processed on a first come, first served basis.
The City said any businesses who are still looking for extra funding sources can explore the following programs for alternative options:
- The State of California's recently released Small Business Disaster Loan Fund Guarantee Program. This program, backed by IBANK, is intended to provide loans to businesses impacted by COVID-19. Please note, IBANK is not a direct lender which means that businesses seeking capital will need to find lenders that are participating in this program. While this can be a viable option for some businesses, the City does not yet have list of participating lenders. They say they will provide updated information on this in the next few days.
- The Economic Development Collaborative's Disaster Loan Fund.
- The Women's Economic Venture's Quick Response Loan.
