SBA Economic Injury Disaster Loan - EIDL
March 27, 2020
SBA Loan Information
SBA’s Economic Injury Disaster Loan (EIDL) program provides small businesses with working capital loans that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. SBA’s EIDLs offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Loans for small businesses will have an interest rate of 3.75%. These loans are not to be used as we understand to refinance existing loans but are to provide bridge financing due to Covid 19 slow down issues (ie, 4-6 moths).
These loan funds are NOT on a first come first serve basis. The SBA website is severely overloaded right now with applicants and visitors may not be able to get in or may experience delays. Businesses might want to wait a few days or try applying during “off” hours.
In applying for these loans, the SBA will determine the amount that a business is eligible for based on the materials submitted. If a business is awarded a loan, the business will obtain the loan proceeds when affirmative notice is received. At that time the business will be able to decide if it wants to accept the loan, or if it needs a different amount. The business will be able to request more (or less) with documentation demonstrating need.
The SBA Site has the actual documents used during the online process. It might be most helpful to download the application forms from the website and pre-fill them prior to filling them out online
Helpful things to have on hand include:
- A Personal Financial Statement.
- Current year-to-date profit-and loss statement (Before disaster)
- MONTHLY sales figures
- Articles of Incorporation (each entity having 20% or more are required to also file).
- 3 years Business and personal tax returns (2016, 2017, 2018), although we are informed via a conference call with SBA today that no tax returns will need to be filed with the loan applications regardless of the size of the loan sought.
Our thoughts are with our business community, and we remain confident in the efforts being taken to mitigate the long-term impact on our community.