SBA ECONOMIC DISASTER LOANS2020-03-26T18:38:06+00:00

US SMALL BUSINESS ADMINISTRATION (SBA) DISASTER LOANS – ECONOMIC INJURY DISASTER LOAN (EIDL) ASSISTANCE

  • Declaration must first be made by state Governor to SBA with approval process to follow
  • Eligible states as of March 23, 2020: Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Illinois, Indiana, Louisiana, Maine, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, and West Virginia
  • Legislation is pending that may make COVID-19 EIDLs available nationally
  • Loans available up to $2 million
  • Employers with 500 employees or less are eligible
  • Available to small businesses and private, non-profit organizations
  • Application is online – website is slow during normal business hours
  • 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—the interest rate is 3.75%; the interest rate for non-profits is 2.75% (currently, there is no provision to lower the rates)
  • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.
  • Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay
  • Must have applicable credit history
  • Must show ability to repay loan
  • Collateral is required for loans over $25,000
  • SBA accepts real estate as collateral when applicable, however SBA will not decline a loan for lack of collateral and will require borrower pledge collateral that is available
  • US Small Business Administration (SBA)