Disaster Loan Assistance

By Bill Luckinbill

As of 11:42 am on Thursday, March 19, 2020, the entire state of Arizona has been added to the Economic Injury Disaster Loan (EIDL) program offered by the Small Business Administration (SBA).  As you may know, the SBA was recently granted authority to lend up to $50 billion to assist in the recovery from the COVID-19 pandemic.  In addition, there is additional pending legislation in Congress that may provide further assistance to the small business community.

These loans will come straight from the SBA, so you may go to the disaster website directly (https://disasterloan.sba.gov/ela).  These loans are to assist small businesses in addressing the negative impact the pandemic and its aftermath are having and will have on the financial health of the US economy.  They are limited to $2 million, carry an interest rate of 3.75% and may be repaid over a term of up to 30 years.  The SBA will determine the maximum loan amount and term upon application.  (For non-profits, the interest rate will be 2.75%, but all other terms remain the same.)

In order to apply, the SBA requires:

Downloadable Forms from SBA Website

• SBA Form 5 (or 5C for sole proprietors)
• SBA Form 159D
• SBA Form 1368
• SBA Form 413D
• IRS Form 4506-T
• SBA Form 2202

Other Documents Required

• Three years’ Federal Income Tax Returns, including all schedules for the applicant business
• Three years’ Federal Income Tax Return, including all schedules for each principal owning 20% or more, each General Partner or Managing Member and each affiliate business when any owner has more than 50% ownership
• If the most recent Federal Tax Returns have not yet been filed, a year-end Profit and Loss and Balance Sheet for that tax year
• A current year-to-date profit and loss