SBDC Questions and Answers
How can I apply for a SBA Economic Injury Disaster Loan?
Answered 2 years ago
Decisions are made case by case and first-come first served so download the Disaster Loan Paper Application Form and start pulling together your financial data asap:
- federal tax returns for the business
- current business financial statements — profit & loss, balance sheets
- personal financial statement
- schedule of liabilities (what you currently owe)
- monthly sales figures
- financial forecasts for sales, COGS etc during period affected by the disaster
- The loan program is for businesses who can demonstrate their “”economic injury is substantial and is a direct result of the declared disaster””
- These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
- Loans are up to $2 million per business with ong-term repayments in order to keep payments affordable, up to a maximum of 30 years.The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
- In reviewing your application the SBA will determine if you’re eligible as a disaster-affected business, and they will also check whether you have available credit elsewhere, which might affect the special rate.
- Since decisions are made on a case by case basis, once the application is in it could be funded in a few days or it might take much longer.
- We have been told that you should still be able to apply for an economic injury disaster loan even if you already have a separate SBA loan.
Full Formal Announcement from SBA on 3/16/2020: SBA COVID19 Disaster Loan Program Open for Applications
For additional information, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail email@example.com or visit www.sba.gov/disaster.