Small business owners in all U.S. states and territories are currently eligible to apply for a Small Business Administration (SBA) low-interest disaster loan due to Coronavirus (COVID-19). The SBA disaster loans being offered are for economic injury which is defined as being in a declared disaster area and have suffered economic injury regardless of physical damage. These loans are called Economic Injury Disaster Loans (EIDL).
EIDL loans are for small businesses, small agricultural cooperatives, small aquaculture enterprises and nonprofits severely impacted by COVID-19 to help meet working capital needs or normal business operating expenses through the recovery period. These are working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. To be eligible for an EIDL loan, the SBA must first determine if you are unable to obtain credit elsewhere.
Here are some things you will need in order to apply:
- A signed and dated IRS Form 4506-T which gives permission for the IRS to provide SBA your tax return information
- Contact information for all applicants
- Social security numbers for all applicants
- Deed or lease information
- Insurance information
- Financial information (e.g. income, account balances and monthly expenses)
- Employer Identification Number (EIN) for business applicants
Also, be prepared to upload additional items such as:
- Your most recent business tax return
- Personal financial statement (or Form 413)
- Schedule of liabilities (Form 2202)
You can apply online and check on your application status at the SBA Disaster Loan Assistance site. The online application is the fastest method to receive a decision about your loan eligibility. You also have the option of submitting a paper application by mail.
There is a three-step process for disaster loans and you can learn more about each of the steps here:
- Apply for the loan
- Property verified and loan processing decision made
- Loan closed and funds disbursed.
Once you have applied, the goal is for the loan officer to have a decision on your application within two to three weeks. If your loan application is approved, the initial disbursement will be made to you within five days after you sign the loan closing documents.
If you have more questions about whether the SBA disaster loan is a good fit for you and your organization, reach out directly to your BerganKDV relationship manager or to info@bergankdv.com.
