How to Apply for the SBA Economic Injury Disaster Loan Program (for Small Businesses Impacted by Corona Virus)

Written By 
Jeff Dyck
March 16, 2020

Many small business owners are getting slammed by the fallout of Covid-19 (aka Corona Virus). As such, I'd like to pass along some Information about the SBA Economic Injury Disaster Loan program which may help you bridge the financial gap while the market stabilizes.

If you have existing loan products like 7a, 504, or a micro-loan, you should contact the financial source of that program to talk about a deferment option. I have heard from friends in the business incubator space that several clients were successful in getting their loans deferred.


What is the SBA Economic Injury Disaster Loan Program? 

The SBA (Small Business Association) announced a loan program which will provide low interest (3.75%) loans of up to $2M so you can cover rent, utilities, payroll and other operating expenses during this time of uncertainty. It's designed for businesses (and non-profits) that don't have the ability to access other credit.

How to Apply: 

Currently the best option is to talk with an SBA 7(a) lender in your area. You can find a lender on the SBAs website here (right side of screen).

What can the loan cover?

  • Rent
  • Payroll
  • Operating Expenses
  • Possibly other items

Getting Additional Help

If you need help with the loan program, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov(link sends e-mail)

If you need some help determining what impact this situation will have on your business and how to respond, then please reach out. I'm already working with a handful of companies to get a plan in place: jeff@boldbridgeadvisors.com

References:

Original Press Release from the SBA

Pat Longo, HCBC

Clear the chaos and confusion that is getting your business stuck.

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