The U.S. Small Business Administration (SBA) is offering a low-interest federal disaster loan through the Economic Inquiry Disaster Loan Program (EIDL). The loan is for working capital for small businesses suffering substantial economic inquiry as a result of the Coronavirus.
These loans:
• Offer up to $2 million in assistance and may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact
• Are available at an interest rate of 3.75% for small businesses and 2.75% for non-profits
• Offer long-term repayments, up to a maximum of 30 years
• Available for all 50 states and U.S. territories
• Can apply today, no application fees
• No pre-payment penalties
Tips:
• Small business definition: based on the industry
• Most manufacturing companies with 500 employees or fewer, and most non-manufacturing businesses with average annual receipts under $7.5 million, will qualify as a small business.
• When applying online – you don’t need your most recent tax return, SBA waived this requirement to speed up the approval process
• On application – select economic inquiry
• If your Company has the ability to get a loan or have an available line of credit, this doesn’t disqualify your Company for the this loan program
• There are other programs in the works, you can apply for this loan and wait to accept if other loans/programs are rolled out. Your Company has 60 days to accept the loan.
Register and apply online at:
https://disasterloan.sba.gov/ela/account/login
Please contact Melissa Stevener, CPA at 716-854-5034 or mas@bspcpa.com with any questions.