At OfficeFinder we want to help however we can. We know that many businesses will need help in the coming months. Here is one way to help alleviate the strain, a Small Business Administration (SBA) Disaster Assistance Loan. Here is some information on them.
The SBA announced on Wednesday that businesses can now apply for the SBA’s Economic Injury Disaster Loans to cover the temporary loss of revenue and meet working capital needs. Funds may be used to pay fixed debts, payroll, accounts payable and other expenses that cannot be met due to the outbreak of the novel coronavirus, formally known as COVID-19. Recognizing the high number of small businesses that will likely apply for loan assistance, the SBA says it may take three weeks or longer for the SBA to approve or deny loan applications.
SBA disaster assistance loan applicants should provide at least two years’ worth of financials to demonstrate the extent to which the pandemic has depleted cash flow.
To apply, business owners can log onto https://www.sba.gov/funding-programs/disaster-assistance to complete an online application
Businesses with access to traditional banks loans may not qualify for economic injury disaster loans. Economic Injury Disaster Loans (EIDLs) are working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay the loan.
• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 4%.
The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.
If there are ways we can help, let us know. Feel free to contact me directly at firstname.lastname@example.org.