By Pauline Law
The Small Business Association (SBA) has launched its application portal for disaster loans. Loans are available to U.S. small businesses, small agricultural cooperatives and most nonprofit organizations. The application may be accessed at the following link: https://disasterloan.sba.gov/ela/.
For Coronavirus disaster assistance, applicants may apply for economic injury disaster loans, which may be used for working capital to pay ordinary and necessary operating expenses. Borrowers may obtain up to $2 million in loan funds. Interest will not exceed 4% and the loans may payable for a term of up to 30 years, depending on the borrower’s ability to pay.
To be eligible for the loans, an applicant must meet the SBA’s revenue or headcount size standards. Click here to review the SBA Small Business Size Standards. Business owners must also be personally invested in their business and meet other credit and financial criteria.
HOW TO APPLY
Visit the SBA’s application portal here: https://disasterloan.sba.gov/ela/.
To apply for the loans, applicants will need to submit the following materials:
- Business Loan Application completed and signed by business applicant.
- IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
- Copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
- Personal Financial Statement completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, or each general partner or managing member.
- Schedule of Liabilities listing all fixed debts.
All of these application materials may be submitted online through the application portal.
TIMEFRAME FOR APPROVAL; DEADLINES
The SBA’s goal is to review all loan applications and make a decision on the applications within 2-3 weeks. Due to strong demand, applicants may reasonably expect that these timeframes will be extended.
The current application deadline for loan assistance is December 21, 2020. This deadline may be subject to change.
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