SBA’s Coronavirus (COVID-19) Disaster Relief Lending
March 23, 2020 | Eric Beepat
Since Real Estate is pretty much on hold, I am deciding to put on my CPA hat and provide resources via blog and social media posts. I actually planned to open a small CPA/Accounting/Tax business called BeepatCPA later this year. This break allows me to get moving earlier than expected. My goal, whether in real estate or as a CPA to help people and small business owners.
First up is “Disaster Loan Assistance” from the US Small Business Administration (SBA). The Covid-19 Outbreak has been declared a disaster in all of the States and is declared a National Emergency as we all know by now. The SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for a small business. These loans can provide vital economic support to small businesses during this rough time. The SBA provides specific state by state details on the disaster. Since, I am in NJ, here is a screen print of the NJ details:
The SBA has applications along with instructions for you. What will you need (not all inclusive of what’s needed):
- Most recent Federal income tax returns
- Personal for Business Financial Statements
- Schedule of Liabilities listing all fixed debts
- Completion of all SBA Applications/Paperwork
- Year-end profit-and-loss statement and balance sheet for that tax year
- A current year-to-date profit-and-loss statement
- Monthly sales figures for increases in the amount of economic injury.
Refer to the following link for more info:
The above link are the paper forms, forms can completed online as well. See this link:
Process for Accessing SBA’s Coronavirus (COVID-19) Disaster Relief Lending
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 businesses 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.
- 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 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 firstname.lastname@example.org.
From what I read/hear these loans will be..
- Strictly based on the information provided
- Gone soon…so act now.