Small Business Owner’s Resources during COVID-19 Crisis
Economic Injury Disaster Loans & Emergency Economic Injury Grants
Economic Injury Disaster Loans (EIDL) through SBA provide low interest loans of up to $2 million with principal and interest deferment at the SBA’s discretion.
In addition, Emergency Economic Injury Grants provide an emergency advance of up to $10,000 to small businesses and private non-profit organizations affected by COVID-19 within 3 days of applying for SBA’s EIDL loan.
All small business owners in the U.S. states and territories are eligible to apply for long-term, low-interest loan due to impact of COVID-19. You are eligible for the EIDL if you are:
- Sole proprietor with or without employees
- Independent Contractor
- Cooperative and employee owned business
- Tribal small business
- Small agricultural cooperative
- Private non-profit (Most)
Credit Requirements for Disaster Loan
CREDIT HISTORY: Must have existing credit history acceptable to SBA.
REPAYMENT: Applicant must be able to show their ability to repay the loan.
COLLATERAL: Collateral is required for loans over $25K. Real estate as collateral is acceptable if available. If collateral is not available, SBA will require the borrower to pledge collateral that is available.
Disaster Loan Details
INTEREST RATE: Maximum rate is 3.75%
LOAN TERMS: Up to 30 years
LOAN AMOUNT LIMIT: Up to $2,000,000*
*If a business is a major source for employement, SBA can waive the $2,000,000 statutory limit
LIMITATIONS: Disaster loan cannot be used to refinance long term debts
INSURANCE REQUIREMENTS: SBA requires borrower to obtain and maintain appropriate insuranace. Borrower’s damaged or collateral property located in special flood hazard area much purchase and maintain flood insurance.
COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION
Link below will directly open Small Business Administration COVID-19 EIDL application. During the application process, you will have an opportunity to opt-in for the $10,000 Emergency Economic Injury Grant
Small Business Debt Relief
Provides immediate relief to small businesses with non-disaster SBA loans. These loans include 7(a), 504, and micro-loans including principle, interest, and fees for 6 months.
Apply for SBA Loans
Provides low interest loans of up to $2 million and emergency advance of up to $10,000 to small businesses and private non-profits affected by COVID-19 within 3 days of applying for SBA Economic Injury Disaster Loan.
Paycheck Protection Program
Provides cash-flow assistance through 100% federally guaranteed loans to employers who maintain their payroll during this emergency period. IF employers maintain their payroll, the loans will be forgiven.
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