Economic Injury Disaster Loans Guidelines
SBA’s Economic Injury Disaster Loan Basics
What businesses are eligible to apply?
- Small businesses
- small agricultural cooperatives
- small aquaculture businesses
- most private non-profit organizations
- directly affected by the disaster
- located in the disaster area
SBA’s Economic Injury Disaster Loan Terms
How much can I borrow?
Up to $2 million.
3.75% for small business 2.75% for NFPs
1 year deferred payment
Up to 30 year term/amortization
How can I use the loan funds?
- Fixed debt payments
- accounts payable
- other bills
- Dividend payments
- Disbursements to owners
- Repayment of stockholder loans
- except as a result of the disaster
- Facility expansion
- Refinance of long term debt
- Physical damage
- Payment of federal debt
Economic Injury Disaster Loan Terms
What are the collateral requirements?
- Real estate preferred on loans over $25,000.
- On loans under $25,000, a personal guarantee but not collateral is required.
- Lack of collateral is not a reason for decline.
Basic Filing Requirements
- Application (Form 5 or 5C)
- IRS 4506T for the applicant, principals and affiliates.
- Business Federal Income Tax Return
- Schedule of Liabilities (SBA Form 2202).
- Personal Financial Statement (SBA Form 413).
- SBA Form 1368 (Monthly Sales Tracking)
Additional Filing Requirements
Other information that may be requested:
- Personal Tax Returns for all principals.
- Year-end financial statements
- Interim (Current) P&L
What are some of the businesses that are ineligible for an Economic Injury Disaster Loan?
- Religious Organizations
- Gambling Concerns
- Casinos & Racetracks
- Speculative Entities
- SBA Loan Packagers
- Real Estate Developers
- Concerns that have credit available elsewhere
SBA’s Customer Service Representatives are ready to serve.
How to Apply
- Paper loan applications can be downloaded from www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
- SBA’s Customer Service Center at 800-659-2955 can provide applications. firstname.lastname@example.org
Submit a COMPLETE Application As Soon As Possible
MISSING INFORMATION IS THE BIGGEST CAUSE OF DELAY
Disaster Loan Application Portal (DLAP)
- How much should I ask for? → Based on needs.
- How do I demonstrate losses? → Consider your fixed expenses.
- What if I don’t have enough collateral? → Collateral is not a reason for decline.
- What do I need to do with my bank? → Nothing, this is a direct loan. However, you should be in contact with them about your situation.
- How much does this cost? → No fees, but documentary costs may apply in some cases, for example when collateral is required.
- Is there a prepayment penalty? → No.
- I have a LOC available. Is that credit elsewhere and am I eligible? → If you have been adversely impacted by the crisis and are concerned about making your payments, we want you to apply.
- Are startups eligible? → Yes.
SBA Cleveland District Office & Ohio Small Business Development Center at Terra State Community College
- Raymond Graves: 216.522.4192 | Raymond.email@example.com
- Mark Hansel: 216.522.4180 x230 | Mark.Hansel@sba.gov
- Tom Sangrik: 216.522.4180 x214 | Thomas.Sangrik@sba.gov
- Tim Ensch: 216.522.4180 x213 | Timothy.Ensch@sba.gov
Ohio SBDC at TSCC
- Bill Auxter: 419-559-2210 or firstname.lastname@example.org