In an effort to provide relief to those affected by the coronavirus, the Small Business Administration (SBA) is accepting applications for Disaster Business Loans. On March 27, 2020 the President signed the CARES Act into law which provides relief funds for both small businesses and American workers. If you are located in a disaster loan region, you are available to sign up for this loan.
4 Quick SBA Disaster Loan Program Qualification Facts
- The business must be located in a Current Disaster Declaration Area to qualify.
- The business must qualify as a small business.
- For it to qualify, it must meet the requirements for maximum number of employees or maximum revenue.
- The application that must be submitted is an SBA Form 5, excluding not-for-profit.
The Loan Three Step Process
Step One:
You must apply either online, in-person, or by mail by filling out the SBA Form 5.
If you are a small business, small agricultural cooperative, small business engaged in aquaculture, or private non-profit organization you may borrow up to $2 million for Economic Injury.
If you are a small business, you may apply for a maximum business loan (physical and EIDL) of $2 million.
As a homeowner you may borrow up to $200,000 to repair/replace your disaster damaged primary residence.
As a homeowner or renter, you may borrow up to $40,000 to repair/replace damaged personal property.
Step Two:
The SBA will review your credit to verify your losses and estimate the total physical loss to your disaster damaged property. If you qualify for the loan, a loan officer will contact you to discuss the loan recommendation and your next steps.
Step Three:
The SBA will prepare and send your loan closing documents for you to sign. Once the loan is received the initial disbursement will be sent to you in five days.
This loan is to provide economic relief for those who are feeling a financial burden due to COVID-19. The SBA disaster loans offers an affordable way for individuals and businesses to recover from declared disasters.
To learn more, contact Satty, Levine, & Ciacco, CPAs, P.C.
