Through this process, SBA is provided an emergency cash advance of up to $10,000 ($1,000 per employee, $10,000 max) that you will not need to pay back. The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP). If you’ve been denied an SBA disaster loan, you have up to 6 months to submit an appeal to the SBA’s Disaster Assistance Processing and Disbursement Center (DAPDC). The only significant downside to an SBA 7(a) loan is the intensive paperwork and processing—but since we can help streamline that for you, this loan really is a win-win. Your loan will be based on financial needs, regardless of whether your company suffered any property damage. The initial application has been streamlined, and requires no additional forms to be submitted. SBA representative told me the only thing you can pay for short term loans (speaking business credit card)is the Min pay min. also here is the SBA Phone number 1-800-659-2955…#1 for english #2 how the pandemic has effected my business. SBA loans and SBA express loans can be used for a wide range of expenses. SBA disaster loan applications can be denied for a few different reasons — the most common being a shaky credit history and a demonstrated inability to repay the loans. How to apply for an SBA loan. Through this program, borrowers can access low-interest loans of up to $2 million directly from the SBA to repair or replace real estate or other assets damaged or destroyed in a declared disaster area. If you’re planning on getting a loan, you might be wondering how that influx of capital will affect your tax commitments. Borrowers can use funds to pay fixed debts and cover payroll, accounts payable, and other bills they cannot pay due to the coronavirus. If you’re looking for clarification on any of the questions, our line by line guide has you covered. 6 When the SBA Administrator issues this type of declaration, SBA disaster loans become available to eligible homeowners, renters, businesses of all sizes, and nonprofit organizations within the disaster area or contiguous counties and other political subdivisions. There are many resources telling you how you can secure an SBA loan but you also need to know what happens when you default. Getting an SBA disaster relief grant or loan is a great opportunity for small businesses, but it’s not the only option. If you want to apply by phone, please call the FEMA Disaster Assistance Helpline: 1-800-621-3362 (also for 711 & VRS) TTY 1-800-462-7585; To apply for an SBA disaster loan, you may apply online at any time using the SBA's Disaster Loan Application. The application takes 5 minutes. You have up to 6-months after receiving the original denial to submit your appeal and must include documentation that supports your reasoning for the appeal. There are also Paycheck Protection Program loans offering 2.5x monthly payroll expenses, capped at $10 million, that can be completely forgiven as long as employers use the money to keep their workers on the payroll for at least eight weeks. You can apply for a loan through the SBA’s Disaster Loan Assistance portal. What can I use the SBA Economic Injury Disaster Loan for? To secure the SBA disaster relief loan, stakeholders — including the business’ partners, officers, directors and any stockholders with 20 percent or more ownership — will need to personally guarantee repayment of the loan. What can you use this loan for? Should I Take the Economic Injury Disaster Loan? Applying for SBA Disaster Loans (EIDL) SBA Disaster Customer Service Center (800) 659-2955 Individuals who are deaf or hard-of-hearing may call (800) 877-8339 3/26/2020 This handout is updated daily with the most current information available. If you can’t pay back an SBA loan, there are certain things you should know. You may still need to wait on the actual lender to approve the loan, however, which can take weeks or months. I have an existing SBA Disaster Loan from a previous disaster, what are my Businesses that have suffered losses related to the COVID-19 pandemic can apply for Small Business Administration (SBA) loans to disaster loans and grants. In short, every small business owner in all US states, territories and Washington DC is eligible to apply for the SBA Disaster Assistance Loans. This advance is no longer available. 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