Fact Sheet – Economic Injury Disaster Loans, California Declaration #16332
Summary
An SBA fact sheet on Economic Injury Disaster Loans dated 03/19/2020, for California Declaration #16332 (Disaster: CA-00313) for the coronavirus (COVID-19) incident occurring January 31, 2020 and continuing. It covers all counties within the State of California and contiguous counties in Arizona, Nevada and Oregon, listed by name. The application filing deadline is December 16, 2020. It describes EIDLs as working capital loans to help small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations meet ordinary and necessary financial obligations.
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Date: 03/19/2020
U.S. SMALL BUSINESS ADMINISTRATION
FACT SHEET – ECONOMIC INJURY DISASTER LOANS
CALIFORNIA Declaration #16332
(Disaster: CA-00313)
Incident: CORONAVIRUS (COVID-19)
occurring: January 31, 2020 & continuing
All counties within the State of California;
the contiguous Arizona counties of: La Paz, Mohave & Yuma;
the contiguous Nevada counties of: Clark, Douglas, Esmeralda, Lyon, Mineral, Nye & Washoe;
and the contiguous Oregon counties of: Curry, Jackson, Josephine, Klamath & Lake
Application Filing Deadline: December 16, 2020
Disaster Loan Assistance Available:
Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural cooperatives, small
businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial
obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
Credit Requirements:
• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay the loan.
• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA
will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
Interest Rates:
The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this disaster is
3.75 percent.
Loan Terms:
The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the
financial condition of each borrower, which in turn will determine the loan term.
Loan Amount Limit:
The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to
the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit.
SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major
source of employment, SBA has the authority to waive the $2,000,000 statutory limit.
Loan Eligibility Restrictions:
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers
who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.
Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this
declaration to determine how an approval of SBA disaster loan might affect their eligibility.
Refinancing:
Economic injury disaster loans cannot be used to refinance long term debts.
Insurance Requirements:
To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose
damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that
flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum
insurance available.
Amendment #1
Date: 03/19/2020
Applicants may apply online, receive additional disaster assistance information and download applications at
https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email
disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may
call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement
Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Amendment #1
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- CA_16332_Amend-1-Fact_Sheet_COVID_Gov_Cert_EIDL.pdf
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- Original
- www.sba.gov