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(NOTE: changes are being communicated several times a day. This email is for information use only and is not to be relied upon.)
The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).

These working capital loans may be used to pay fixed debt, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. These loans are not intended to replace lost sales or profits or for expansion.  Borrowers will be required to keep documentation of loan usage for 3 years.  Existing cash reserves will be taken into account when determining loan eligibility/need.
Who can apply?
In order to be eligible, you must be a small business (500 employees or less).
  • Small businesses affected by the disaster - common eligible businesses include: retailers, restaurants, recreational facilities, tourism-based businesses, manufacturers, owners of rental property, hotels, wholesalers, and many more.
  • Private nonprofits
  • Small agriculture cooperatives are eligible, but agricultural enterprises are not
  • Small aquaculture businesses

´╗┐There is no cost to apply and you are not required to take the loan if approved
If you have an existing SBA loan, requesting a deferment will NOT impact your eligibility for disaster loan financing.
How much can I apply for?

You will not be asked how much you would like to borrow. The SBA uses the information you provide to determine the loan amount. Small businesses can receive a secured loan up to $2 million, and an unsecured loan up to $25,000.
  • Payments will be deferred for 12 months
  • Term and amortization up to 30 years (can request less)
  • No prepayment penalty
  • Loans < $25,000 will be unsecured
  • Loans > $25,000 will be secured by available collateral
  • 3.75% fixed interest rate

TIP: One of the first questions on application is "Are you applying for".
Only select Economic Injury (EIDL)

What will happen next?

  • You will receive an email confirmation that your application has been submitted
  • You will receive an email letting you know that your application is under review.

BE PREPARED : You will be contacted by someone from the SBA. Make sure you have your financial information and projections close at hand.