What businesses are eligible to apply? SBA’s Economic Injury Disaster Loans (or working capital loans) are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations Businesses directly affected by the disaster Businesses that offer services directly related to the businesses in the declaration Other businesses indirectly related the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product. What is the criteria for a loan approval? Credit History-Applicants must have a credit history acceptable to SBA. Repayment –SBA must determine that the applicant business has the ability to repay the SBA loan. Eligibility- Business that have suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons. How much can I borrow? Eligible entities may qualify for loans up to $2 million. The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years. Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources. How can I use the loan funds? These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion. What are the collateral requirements? Economic Injury Disaster Loans over $25,000 require collateral. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available. What kinds of small businesses can apply? Examples of eligible industries include but are not limited to the following: hotels, recreational facilities, charter boats, manufactures, sports vendors, owners of rental property, restaurants, retailers, souvenir shops, travel agencies, and wholesalers. What other criteria is involved? The applicant business must have a physical presence in the declared disaster area. An applicant’s economic presence alone in a declared area does not meet this requirement. The physical presence must be tangible and significant. Merely having a P.O. Box in the disaster area would not qualify as a physical presence. Basic Filing requirements: Completed SBA loan application (SBA Form 5 or 5C). Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates. Complete copies of the most recent Federal Income Tax Return. Schedule of Liabilities (SBA Form 2202). Personal Financial Statement (SBA Form 413). Other Information may also be requested. Although a paper application and forms are acceptable, filing electronically is easier, faster and more accurate. We recommend printing and filling out paperwork prior to sitting down to fill out online Additional Filing Requirements: Other information that may be requested (better to provide all info prior to hitting submit): Complete copy, including all schedules, of the most recent Federal income tax return for principals, general partners or managing member, and affiliates (see filing requirements for more information). If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year. A current year-to-date profit-and-loss statement. Additional Filing Requirements (SBA Form 1368) providing monthly sales figures. (This is especially important for Economic Injury Disaster Loans.) What are some of the businesses that are ineligible for an Economic Injury Disaster Loan? Agricultural Enterprises -If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance. Religious Organizations Charitable Organizations Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities) Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of 1/3 criteria above. How to apply: Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela. Paper loan applications can be downloaded from http://www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov.
