The Small Business Administration (SBA) intends to mitigate the financial strain many businesses are experiencing.
The SBA’s programs include a Paycheck Protection Program, an Economic Injury Disaster Loan (EIDL) Program, Express Bridge Loans and Debt Relief.
With the magnitude of financial problems caused by the coronavirus pandemic, some small-business owners have experienced a slow response to requests for SBA assistance.
The COVID Loan Tracker helps small-business owners see when Paycheck Protection Program and EIDL money begins to be available.
Applications for coronavirus disaster relief funding are now open to approved states. As of March 27th, all 50 states have been approved for this funding including U.S. territories American Samoa, Puerto Rico, U.S. Virgin Islands, Guam and the Northern Mariana Islands.
Disaster Relief Loans
The SBA will issue an Economic Injury Disaster Loan declaration to each state upon request by its governor, which allows the state’s small businesses and nonprofits to apply for these disaster relief loans.
Interest rates on the loans are 3.75 percent for small businesses and 2.75 percent for nonprofits and terms of repayment can be up to 30 years.
Specifics on loan repayment are given on a case-by-case basis and determined by the applicant’s ability to repay the loan.
Small businesses and nonprofits can use these low-interest federal loans to make payroll payments and other fixed loans and bills that cannot be met as a result of the economic effect of coronavius.
U.S. Small Business Administration Administrator Jovita Carranza also announced that small businesses with previous SBA loans for disaster will receive automatic deferments through December 21, 2020.
The Documentation You Need
• Applicant contact information
• Social security numbers for all applicants
• FEMA registration number, if you have one
• Deed or lease documentation
• Insurance documentation
• Financial information (e.g. income, account balances and monthly expenses)
• Employer Identification Number (EIN) for business applicants
An Initial Phase
This is an initial phase in providing support to small businesses that have or will see an economic loss in revenue. On March 11, President Donald Trump requested Congress to add $50 billion to the SBA funding to support businesses during this economic hardship.
“I am instructing the Small Business Administration to exercise available authority to provide capital and liquidity to firms affected by the coronavirus,” said the President in an Oval Office address to the nation.
“Effective immediately, the SBA will begin providing loans in affected states and territories,” he said. “These low-interest loans will help small businesses overcome temporary economic disruptions caused by the virus. To this end, I am asking Congress to increase funding for this program by an additional $50 billion.”
Carranza revised the criteria for states and territories seeking an economic injury declaration related to Coronavirus by making it faster for states to qualify and making it available statewide instead of by county.
“As a result, most small businesses that need credit during these uncertain times will be able to obtain it,” she said. “However, our goal is to ensure that credit is available to any and all small businesses that need credit but are unable to access it on reasonable terms through traditional lending channels.”
The SBA has a three-step application process online. To apply for assistance, visit the SBA disaster assistance website. Be aware that the SBA website has experienced a significant increase in traffic as a result of the COVID-19 pandemic and page may be slow to load or down.
For more information, read the SBA’s “Coronavirus (COVID-19): Small Business Guidance & Loan Resources”; contact SBA’s Customer Service Center at (800) 659-2955 or email email@example.com for more information.
Finder also has this 11-step resource available: How to apply for the Economic Injury Disaster Loan.
About the Author
Aiyana Fraley, LMT, is a freelance writer and health care professional with more than 17 years of experience in the massage field. She teaches yoga and offers sessions in massage, Reiki, sound healing and essential oils. Her articles for massagemag.com include “Advanced Massage Training Will Take Your Career to the Next Level — Just Ask These Massage Therapists” and “The Massage Therapist’s Guide to Assisted Stretching Techniques.”