COVID-19 SBA DISASTER LOAN
What is an SBA disaster loan?
The U.S. Small Business Administration (SBA) offers affordable financial help to small businesses suffering substantial economic injury. In the context of the Coronavirus (COVID-19), the SBA is offering economic support to small businesses to overcome the temporary loss of revenue.
How does an SBA disaster loan work?
The SBA works with lenders to provide loans to small businesses. The agency does not lend money directly to small business owners. Instead, it sets guidelines for loans made by its partnering lenders, community development organizations and micro-lending organizations. The SBA reduces risk for lenders and makes it easier for them to access capital. That makes it easier for small businesses to get loans.
Do I have to repay the SBA disaster loan?
Who is eligible for an SBA disaster loan?
A small business of any size who meets the eligibility requirements. The requirements range from years in business, ability to pay back the SBA loan, the credit score of the owner, etc.
What can the SBA disaster loan be used for?
The SBA disaster loan can be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the impact.
How much assistance can I expect with the SBA disaster loan?The amount of any SBA disaster loan will depend on eligibility and economic injury. Small businesses can apply for up to $2,000,000.00 in assistance.
What is the current interest rate for an SBA disaster loan?
The current interest rate for small businesses impacted by COVID-19 is 3.75%. The interest rate for non-profits is 2.75%.
What is the deadline to apply for a SBA disaster loan related to COVID-19?
As of today, the deadline to apply for an SBA disaster loan for businesses impacted by COVID-19 is December 21, 2020.
What is the process?
1. Complete and submit an application.
2. The SBA will review your credit and perform an inspection to verify losses.
3. A loan officer will determine your eligibility and arrive at a decision within 2 to 3 weeks.
4. If your application is approved, SBA will prepare Loan Closing Documents for your signature.
5. You can expect an initial distribution within 5 days of returning the signed Loan Closing Documents: $25,000.00 for economic injury (working capital).
6. A case manager will be assigned to help you meet loan conditions and schedule subsequent disbursements until you receive the full loan amount.
I am interested in an SBA disaster loan. Where do I start?
Let the attorneys at Mattleman, Weinroth & Miller, P.C. help you apply for an SBA disaster loan.
Complete the COVID-19 SBA Questionnaire for your free Questionnaire and an experienced MWM attorney will review before contacting you within 48 hours.
You can also contact us directly by calling 1-800-507-6241 and requesting a a COVID-19 SBA Questionnaire for one of our experienced attorneys to review.
We will also keep you posted as to any further updates and as to the new guidelines that we expect to be announced in the coming days.