East County News Service
Photos and source: U.S. Small Business Administration
March 18, 2020 (San Diego)—Due to local, state and national disaster declarations, the Small Business Administration is offering low-interest loans in our region for small businesses that have suffered economic consequences due to the coronavirus.
To apply, visit https://www.sba.gov/funding-programs/disaster-assistance.
For more information, click Read more.
U.S. Small Business Administration:
SBA Disaster Assistance in Response to the Coronavirus
-The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state's or territory's Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.
-Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small business and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).
-SBA's Office of Disaster Assistance will coordinate with the state's or territory's Governor to submit the request for Economic Injury Disaster Loan assistance.
-Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available to all affected communities as well as updated on our website: SBA.gov/disaster.
-SBA's Economic Injury Disaster Loans 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.
-These 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% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
-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.
-SBA's Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government's coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.
-For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail email@example.com
-Visit SBA.gov/disaster for more information.
STEP 1: Apply for Loan
-Apply: 1) online; 2) in-person at a disaster center; or 3) by mail.
-Apply online at the SBA's secure website disasterloan.sba.gov/ela.
-As a business of any size, you may borrow up to $2 million for physical damage.
-As a small business, small agricultural cooperative, small business engaged in aquaculture, or private non-profit organization you may borrow up to $2 million for Economic injury.
-As a small business, you may apply for a maximum business loan (physical and EIDL) of $2 million.
-As a homeowner you may borrow up to $200,000 to repair/replace your disaster damaged primary residence.
-As a homeowner or renter, you may borrow up to $40,000 to repair/replace damaged personal property.
STEP 2: Property Verified and Loan Processing Decision Made
-SBA reviews your credit before conducting an inspection to verify your losses.
-An SBA verifier will estimate the total physical loss to your disaster damaged property.
-A loan officer will determine your eligibility during processing, after reviewing any insurance or other recoveries. SBA can make a loan while your insurance recovery is pending.
-A loan officer works with you to provide all the necessary information needed to reach a loan determination. Our goal is to arrive at a decision on your application within 2-3 weeks.
-A loan officer will contact you to discuss the loan recommendation and your next steps. You will also be advised in writing of all loan decisions.
STEP 3: Loan Closed and Funds Disbursed
-SBA will prepare and send your Loan Closing Documents to you for your signature.
-Once we receive your signed Loan Closing Documents, an initial disbursement will be made to you within 5 days.
Economic injury (working capital):
$25,000 (in addition to the Physical damage disbursement)
-A case manager will be assigned to work with you to help you meet all loan conditions. They will also schedule subsequent disbursements until you receive the full loan amount.
-Your loan may be adjusted after closing due to your changing circumstances, such as increasing the loan for unexpected repair costs or reducing the loan due to additional insurance proceeds.
More Info: SBA.gov/disaster
(SBA): August 2018 v1