The Small Business Administration (SBA) has several supporting programs to help small businesses recover from losses due to natural disasters or any other hardship. That means any business affected by a natural disaster or some other damage can get funds if it succeeds in qualifying for disaster relief.
A disaster loan is typically released only for U.S areas being declared as a disaster area. Keeping in view the current condition, the program is also expanded to small businesses negatively affected by COVID-19.
The Federal government and SBA started a relief program (paycheck protection, disaster loan, and tax credits) to help the employers affected by the COVID-19 pandemic and contribute towards an economic boost.
If your small business has also been affected by covid-19, you can apply for the Economic Injury Disaster Loan program to get a low-interest loan. To apply, here is a step-by-step guide for you
How can you apply for the SBA Economic Injury Disaster Loan program?
Go To SBA Disaster Loan Website
To begin the loan application process, access the link to their website.
Verify your eligibility
There will be a two-part verification process.
- The first part certifies that your business comes under the Economic Injury Disaster Loan (EIDL) Program parameters. You have to choose one description that fits your business.
- The second part certifies that your business is not engaged in any disqualifying activities. Review the descriptions and check each box.
Now click the “Continue” button at the end of the page to start the online application.
Provide your business information
To complete this step, you need to provide information related to your business which includes:
- Your business legal and trade name
- Federal EIN or social security number
- Gross revenues
- Cost of goods sold in 12 months up to January 31, 2020
- Date when you started the business
- Number of employees
➡LEARN MORE: How to file a business taxes extension?
Provide Business Owner information
In this part of the application, at the top of the page, you will be asked whether some business entity owns the business. If yes, you have to provide information about that entity, and that entity must sign a loan guarantee.
Whether it’s a business entity or business owners, you have to provide their information. If there is more than one owner, you need to fill following information about every owner:
- Business ownership percentage
- Phone number
- Residential address
- Social security number
- Date of birth and birthplace
- Citizenship status
Provide additional information
On this page, you are required to fill in certain sections to complete the application process.
- The first section requires you to answer your criminal history or issues in dealings with the federal government.
- The second section applies to one who assisted you in applying. Provide the name and contact information about that person.
- Before moving on this page, you will be asked if you need a $10,000 advance on your disaster loan. This advance is also called a grant and if the request got approved, expect to receive it within three days. This grant is not needed to be payback. However, you must pay the remaining part of the loan back.
- The last section of this page asks for your bank information where your advance and loan will be deposited. Always make sure that you are entering your bank information on the right site.
Now read the provision stating that they may ask for additional information, no one was paid for the preferential treatment, all the information provided is accurate, and then click “Next.”
There will be an OMB control number in the top right corner of the form. Note down that number. Your application has been submitted now.
For up to a $500,000 loan, SBA decides on your application within hours. If your request goes approved, expect to receive funds after a week or two.
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