EIDL Program (Economic Injury Disaster Loan)
Â· The SBA has a program that potentially is providing up to 30 year loan amortization at a 3.75% rate for disaster recovery on the coronavirus.
Â· The SBAâ€™s disaster relief page lists current states and territories that have been declared a disaster. This is a required step for businesses within those areas to begin to apply for the aid, but the agency recently relaxed those standards. (https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-0)
Â· This is the link to apply for an Economic Injury Disaster Loan that can provide up to $2 million: https://disasterloan.sba.gov/ela/
Â· Below is information on what is required. Late last night/early this morning the SBA materially streamlined its disaster loan application process.
1. There is no pre-registration process requiring a user name and password.
2. Go to the site in the link above and log right on and push â€œapply onlineâ€.
3. Download the 3 forms identified below.
4. You no longer fill the forms out on line-you fill them out offline, scan and upload.
5. Form 5 is for entities and Form 5-C is for sole proprietorships.
6. Item 15 on Form 5 asks for the economic injury you are claiming.
7. There is no longer a text box to make comments on, so if an applicant desires to be more specific about its economic harm, its loan request and the urgency of the loan, especially to retain employees, the applicant may want to consider typing up a very short addendum and attaching it to Form 5, since all of it is scanned and uploaded.
8. On the economic jury form you respond question on revenues and self-certify as to size of company making applicant eligible for the Disaster Loan Program
9. You upload the completed Form 5 or 5C (whichever is applicable) and the Economic Injury form.
10. The other forms listed below (beyond the first three mentioned) should be downloaded and completed, so if the SBA loan officer contacts you for this additional information, which the SBA has the right to ask for, you are prepared.
Â· All 50 states have now been classified as disaster areas and the SBA has a program for disaster areas that is potentially providing up to 30 year loan amortization at a 3.75% rate for business disaster recovery on the coronavirus.
Â· The SBA requires you apply online… the system is overwhelmed, so there is no guarantee on timing. Once you submit, you cannot amend. Be certain to keep the confirmation number when you submit the application. Once you submit, it may be several weeks before you hear from the government.
This is the link for guidance from the SBA: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-0