***THE APPLICATION PROCESS AND ELIGIBILITY CHANGES FREQUENTLY – I’ll try to keep this post updated and as accurate as possible.***
I’ve participated in three webinars this week about the SBA Disaster Loans for the COVID-10 crisis. I wanted to give a quick synopsis with tips and more resources to assist the small businesses in our community with applying.
If you’re a visual learner, I did a Facebook Live overview. You can WATCH IT HERE.
Some important notes:
First, there is no fee to apply and no obligation to accept the funds if approved. Therefore, if you THINK you MAY need assistance with your working capital during this crisis, go ahead and fill out the application so that you are in the system. This is a first come/first serve program.
Secondly, applying for this program DOES NOT preclude you from other programs that may be offered by the CARES act (expected to pass the House today), or other stimulus that may pass in the future.
Finally, some changes to eligibility – sole proprietors ARE eligible to apply. Also, if you were in business as of March 23, 2020 you ARE eligible to apply.
- This is a LOAN program – not a grant. Funds will have to be repaid
- It is a federal debt, therefore not forgivable
- Funds can be used for Working Capital (fixed debts, payroll, accounts payable, etc). Funds CAN NOT be used for expansion or refinancing
- These loans are usually made for physical disasters and the application does not specifically address the COVID-19 crisis
- Amounts are up to $2 Million
- Interest rates are 3.75% for small businesses
- Max term is 30 years
- Collateral is required for loans over $25, 000 (no real estate as collateral)
- When applying online, record your user name, password, and application number
SBA Application Link – To begin the application process (the apply online feature is currently down, but expected to be back up within 72 hours)
SBA Webinar Slide Deck – A detailed overview of completing the application
ASBTDC Webinar – An overview of the loan guidelines and eligibility
Conductor Overview – A detailed preparation guide from The Conductor
My goal is to be a guide for small businesses during this crisis. Please let me know how I can best serve you. The best way to follow me is on Facebook.