SBA Economic Injury Disaster Loans NOW OPEN: How to Apply
Wednesday, March 25, 2020
On March 19, 2020 Colorado was declared an eligible disaster zone as a result of the Coronavirus pandemic (COVID-19). What this means for Parker businesses is that SBA Economic Injury Disaster Loans are available to provide financial support for those who need it, with funds available for distribution in as little as three weeks after submitting the application.
Loan amounts may be as high as $2 million. Loan funds can be used as working capital and to pay things like payroll, general operation expenses, utilities, etc. These loans can be repaid over 30 years, based on capacity to pay, and are offered at interest rates as low as 3.75 percent for small businesses and 2.75 percent for nonprofit organizations.
How to Apply for an SBA Economic Injury Disaster Loan in Parker, Colorado
You can complete the application online or download a paper application. If completing a paper application, it should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Support is provided via an SBA hotline. Contact 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 firstname.lastname@example.org.
When applying, you will also need the following documents -
- Completed SBA loan application (SBA Form 5).
- 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).
- Income, balance sheet, and cash flow documents.
- Other Information may also be requested, such as tax returns, P&L, balance sheet, SBA Form 1368 providing monthly sales figures
Who is eligible for an SBA Economic Injury Disaster Loan?
- Applicants must meet the SBA requirements of a small business (500 employees or fewer)
- Businesses directly affected by COVID-19
- Businesses that offer services directly related to the businesses in the declaration. In other words, if your business serves small businesses impacted by COVID-19 you would qualify
- 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)
- Nonprofit businesses
The SBA will review applications submitted by eligible entities and make a loan approval decision based on criteria such as the credit history of a business and their ability to repay the loan.
Below are tips for making the application process easier -
- Include the specific disaster in your application – specifically reference “COVID-19” or Coronavirus.
- Apply online vs by mail.
- Write your password down; neither the system nor any personnel are able to retrieve it.
- Save your work at every prompt.
- Do not rush through the application. Check and recheck the filing requirements to ensure that all the needed information is submitted. The biggest reason for delays in processing is due to missing information.
- Make sure to complete all filing requirements before submitting the application and forms.
- Be sure to use the same contact information (business name and the name of all owners) that you use on your federal tax returns. Double-check that they match.
- If your tax returns reference other businesses that you own, you must also submit those tax returns in order to avoid processing delays.
- If more funds are needed, applicants can submit supporting documents and a request for an increase. If fewer funds are needed, applicants can request a reduction in the loan amount.
- If the loan request is denied, the applicant will be given up to six months in which to provide new information and submit a written request for reconsideration.