SBA Disaster Loan Information
Small business owners looking for financial aid and relief due to the economic effects of the current coronavirus outbreak may want to apply for a business loan through the Small Business Administration’s loan program.
President Trump, on March, 11, 2020, instructed the SBA to exercise its authority in extending low-cost capital to small business owners through the Economic Disaster Injury Loan program.
He also asked Congress to fund the program with an additional infusion of $50 billion, on top of the $7 billion authorized last week for the SBA’s disaster-relief program for small businesses, nonprofits, and other entities.
You can apply for and access Economic Injury Disaster Injury Loan (EIDL) funds, when will they are made available in your state.
As of the week of March 19, a number of states have been declared “disasters” due to the coronavirus pandemic. Affected businesses in these states can begin applying for EIDLs. If your business is suffering economic loss, you can check the EIDL eligible states here.
SBA ECONOMIC INJURY DISASTER LOANS FOR
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses and nonprofits suffering substantial economic injury as a result of the Coronavirus (COVID-19). Indiana is an approved State.
If your business is suffering because of the shutdowns and loss of traffic, and you do not have access to working capital you need, an SBA Disaster Loan may be a good option.
You can apply directly online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela
Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email email@example.com for more information on SBA disaster assistance.
Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Paper Forms are available here .
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.
If you need help applying for an SBA disaster loan, or if you would like to see what other options are available, please call us (317) 589-0118
We may charge a small fee for our time in assisting with information and packaging information, but most business owners can do this themselves.
You can also contact us here. if you have questions or a customers needs help with the application.
We will do our best to help!
Here is additional information on Business Funding for Businesses hit by the Coronavirus shutdown…
Coronavirus Business Loans Available Through the SBA
The SBA’s Economic Injury Disaster Loans provide small businesses working capital loans of up to $2 million to help offset the temporary loss of revenue due to disasters.
The rates on EIDLs is 3.75% for a business that can not get credit elsewhere. The interest rate for nonprofits is 2.75%. The “without available credit elsewhere” rule states your loan request will be denied if you have enough available cash on hand or can get credit from another lending source to cover your costs. It may be that legislative frameworks put forward by Congress to fund the SBA for the coronavirus outbreak will eliminate this requirement. Please confirm with the SBA.
Terms are for up to 30 years, and repayment terms are based on your ability to repay the loan.
EIDLs are directly funded from the SBA. The SBA does not generally disburse loans to small business owners. Through their 7(a) and 504/CDC loan programs, the SBA partially guarantees loans that are made by SBA-approved private lenders and banks.
Right now, interest rates are low, and legislation that boosts funding to the SBA should make these loans even more affordable.
Where Can You Apply for a Coronavirus Business Loan?
According to the SBA, the process for making funds available to small business owners through this program is as follows:
- Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, nonprofit organizations in designated areas of a state or territory to help alleviate economic injury caused by the coronavirus.
- 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.