Disaster Loan Assistance from the SBA for Small Businesses and private Non-Profits (SBA file date: 20200326)
Summary
A U.S. Small Business Administration presentation, whose slides were to be made available for download at www.sba.gov/tx/sanantonio, explains Economic Injury Disaster Loans (EIDL) for the COVID-19 disaster under Disaster Declaration #: TX-00544. EIDLs of up to $2 million carry a 3.75% interest rate for small businesses and 2.75% for private non-profits, with no payments for 12 months and 30-year repayment; loans over $25,000 require collateral. The slides list ineligible businesses, the approval criteria and the documents needed, including IRS Form 4506-T and two years of business tax returns unless the loan is for under $500,000. A decision normally takes up to 4 weeks, followed by an initial disbursement of $25K within 5 days. The deck ends with SBDC, SCORE and LiftFund resource partners in San Antonio and Austin.
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U.S. Small Business
Administration
Agenda
1. Disaster Loan Assistance from the SBA
for Small Businesses and private Non-Profits
2. Resource Assistance from the SBA and our Partners
3. Additional Resources
These slides will be made available to download at:
www.sba.gov/tx/sanantonio
Economic Injury Disaster Loans (EIDL)
Loans up to $2 million; no payments for 12 months
Small businesses and private non-profits are eligible
May be used for fixed debts, payroll, accounts payable and other bills affected by the disaster
3.75% interest rate for small businesses without credit available elsewhere; businesses with credit
available elsewhere are not eligible.
2.75% for private non-profits
Long-term repayments for COVID crisis will be 30 years
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Additional EIDL Details
• No cost to apply
• No obligation to take the loan (if offered)
• Amount should reflect 6 months operating expenses
• Existing SBA loans are OK:
• Applicant can have an existing SBA Disaster Loan and still qualify
• Applicant can have other existing SBA Loan (7a, 504, etc) and still qualify
• Loans cannot be consolidated
• Collateral:
• If over $25,000 EIDLs require collateral
• SBA will not decline for lack of collateral, but requires the pledge of what is
available
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Who is Ineligible
• Any business where gambling is more than 1/3 of annual gross revenue
• Casinos & Racetracks where their purpose for being is gambling
• Businesses of a prurient sexual nature
• Pawn Shops is more than 50% of income derives from interest
• Religious Organizations
• Investment or Lending companies
• Charitable Organizations (private non-profits are OK)
• All Speculative Activities
• Agricultural Enterprises
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Criteria for Approval
• Credit History - acceptable to SBA.
• Repayment - business must exhibit the ability to
repay the loan. Were you current on your
obligations as of Jan 31?
• Eligibility - business must be located in a declared
state and suffered working capital losses due to
the declared disaster.
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How to Apply for EIDL
• Works best with Internet Explorer or Microsoft Edge
• For the COVID-19 disaster everything will be online
• Disaster Declaration #: TX-00544
• The website for applying for EIDL is https://disasterloan.sba.gov/ela
• You may also contact the SBA disaster customer service center:
• 1-800-659-2955
• e-mail disastercustomerservice@sba.gov
• TTY: 1-800-877-8339
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How to Apply for EIDL
Small businesses and non-profits
can apply in two ways.
1. Fill out the PDFs and supporting
documentation and upload it
using the drop box.
2. Fill out the PDFs and
mail them with the supporting
documents to the address in
Fort Worth, Texas, on the
application.
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What You Need to Apply
• In addition to the loan application:
• Completed IRS Form 4506-Ts:
• owner
• each principal that owns 20% or more
• each general partner or managing member
• each owner who owns more than 50% of an affiliate business
• At least two (2) years complete business tax returns with all schedules
• UNLESS the loan is for under $500,000. In that case only 4506T is needed
• If you haven’t been in business two (2) years; OK. Submit what you have.
• Personal Financial Statement for each applicant
• Schedule of Liabilities for all fixed debts
• Other information that may be requested:
• A current year-to-date profit-and-loss statement.
• If the most recent Federal tax return has not been filed, a year end profit and loss statement
and balance sheet for that tax year.
• SBA Form 1368 providing monthly sales figures
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The Three Step Disaster Loan Process
Apply online - https://disasterloan.sba.gov/ela
Loan Processing Decision
• Information is verified and credit checked
• Forecasts are completed to determine the EIDL amount
• A loan officer contacts you to discuss the loan recommendation and next steps
• Decision normally takes up to 4 weeks
Loan Closed and Funds Disbursed
• Sign and Submit Loan Documents
• Initial disbursement of $25K within 5 days
• A Case Manager is assigned to work with you to help meet all loan conditions
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Important Notes About Your Application
• Please complete and submit everything required
• Delays occur due to missing / incomplete information
• If more funds are needed, you can submit supporting documents and
request an increase
• If less funds are needed you can request a reduction
• If denied you will be given up to six months to provide new information and
a written reconsideration request
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Deferments of Your Existing SBA Loan
7(a) Loans and
504 Loans
Micro Loans
• Lenders may help with temporary cash • CDCs may help with temporary cash
flow issues by deferring payments flow issues by deferring payments
• For 7(a) loans, up to six (6) consecutive • The amount deferred should not exceed
months six (6) cumulative months or 20% of the
• For micro loans, up to six (6) consecutive original loan amount, whichever is less
months
• No deferment may not cause the loan to
extend beyond the maximum seven (7)
year maturity
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Important Resource Assistance from SBA
SBA has three local Resource Partners
• South-West Texas Border Small Business Development Centers (SBDC) Network
• SCORE Chapters – San Antonio and Austin
• Liftfund Women’s Business Center (WBC)
A range of help during the downturn, to include:
• Cash flow management / short term financial management
• Messaging / Social Media to stay engaged with customers
• Import/Export
• Supply Chain
• Strategic Planning and Financial Tune-Up; prepare to prosper after the disaster
• Planning for further disasters / Risk management / Insurance counseling
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Contact Information
Austin SCORE Chapter #249 – Main Office LiftFund Women’s Business Center South-West Texas Border SBDC Network Office
Westland Park
5524 Bee Caves Rd., Ste. M-100 San Antonio Central Public Library UTSA Institute for Economic Development (IED)
Austin, TX 78746 600 Soledad Street 501 W. Cesar E. Chavez Blvd.
Phone: 512.928.2425 San Antonio, TX 78205 San Antonio, Texas 78207
www.scoreaustin.org www.liftfund.com www.txsbdc.org
San Antonio SCORE Chapter #164 – Main Office UTSA SBDC – San Antonio Sul Ross – Eagle Pass
Hipolito Federal Courthouse 210.458.2450 830.758.5022
2nd Floor, Ste. 298
615 E. Houston Street Texas State SBDC – Austin UHV SBDC – Victoria
San Antonio, Texas 78205 512.420.9379 361.485.4485
Phone: 210.403.5931
www.sanantonioscore.org Veterans Business Outreach Center TAMIU SBDC – Laredo ASU SBDC – San Angelo
956.326.2847 325.942.2098
1407 E. Freddy Gonzalez Dr.
Edinburg, TX 78452
www.utrgv.edu/vboc
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File and source
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- SADO_COVID_19_webinar_20200326.pdf
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- Original
- www.sba.gov