Business owners in all 50 states now qualify!
If you’re a business owner in one of the states affected by the Coronavirus / COVID-19 economic slowdown you may quality for a US government Small Business Administration (SBA) loan.
The US government recently announced $50 billion of available funds for business owners. This information is subject to change, but as of now, qualifying businesses can ask for up to $2 million in funding at low interest rates of 3.75%.
These special loans must be applied for directly with the SBA.
As there are financial documents and tax documents involved, we can help you get organized so that you have the best possible chance of getting the money you need to continue to run your business.
What are the loan terms?
- Loans up to $2 million (can be higher)
- 3.75% interest rate
- 12-month deferral of first payments
- Repayment terms up to 30 years
- First payment can be deferred for 12 month
- First check is for up to $25,000 about 5 days after loan approval
Who is eligible for the Economic Injury Disaster Loans?
This is a Working Capital Loan Program which is used to cover normal business expenses such as rent, payroll, A/P, etc.
To be eligible for the loan:
- The business must be located in one of the counties for a State that has been declared a Presidential and SBA Agency Disaster Area
- It must be a small business, agricultural co-operative, or private not-for-profit
- There is the expectation that they can repay the loan
- The business must have suffered substantial economic damage
- Must be considered a small business. To review the requirements, click here.
What businesses are eligible for the disaster loan?
To be eligible for the loan:
- The business must be PHYSICALLY located in one of the counties for a State that has been declared a Presidential and SBA Agency Disaster Area
- It must be a:
- Small business
- Agricultural co-operative
- Private not-for-profit
- There is the expectation that you can repay the loan
- Must have a business that has suffered substantial economic damage
Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
How can my business spend my economic injury disaster loan?
- You can only use the loan proceeds for working capital necessary to carry your concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury, but not to exceed that which the business could have provided had the injury not occurred
- Loan proceeds may not be used to:
- Refinance indebtedness which you incurred prior to the disaster event,
- Make payments on loans owned by another federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act,
- Pay, directly or indirectly, any obligations resulting from a federal, state or local tax penalty as a result of negligence or fraud, or any non-tax criminal fine, civil fine, or penalty for non-compliance with a law, regulation, or order of a federal, state, regional, or local agency or similar matter,
- Repair physical damage, or
- Pay dividends or other disbursements to owners, partners, officers or stockholders, except for reasonable remuneration directly related to their performance of services for the business