SBA Disaster Assistance in Response to the Coronavirus

 

While Stony Brook SBDC public events have been postponed, remote counseling remains available to discuss how we can help your small business through this uncertain time and discuss programs available to small business owners.

 

Click Here To Book A Free Remote Business Counseling Session at Stony Brook SBDC

 

SBA Disaster Assistance in Response to the Coronavirus

Economic Injury Disaster Loan Program

 

The Stony Brook SBDC is one of the SBA’s designated Partners to provide support services for this effort. For more information and guidance in submitting your application, please contact us by Clicking Here

Click Here To make an online appointment with one of our Business Advisors

Key points about Disaster Relief due to Coronavirus
 
• The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).  
 
• Eligibility- The applicant  must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.Examples of eligible industries include but are not limited to the following: hotels, recreational facilities, charter boats, manufacturers, sports vendors, owners of rental property, restaurants, retailers, souvenir shops, travel agencies, and wholesalers.
 
• SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
 
• These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
 
• SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
 
• Criteria for a loan approval
Credit History- Applicants must have a credit history acceptable to SBA.
Repayment- SBA must determine that the applicant business has the ability to repay the SBA loan.
 
• Collateral requirements 
-Economic Injury Disaster Loans over $25,000 require collateral which means the maximum unsecured loan amount is $25,000.
-SBA takes real estate as collateral when it is available.
-SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available.
 
• Applicants can have an existing SBA Disaster Loan and still qualify for an EIDL for this disaster, but the loans cannot be consolidated.
 
• The Application Process – What documentation is needed:
-Completed SBA loan application (SBA Form 5 or 5C)
-Tax Information Authorization (IRS Form 4506T)
-Complete copies of the most recent Federal Income Tax Return.
-Schedule of Liabilities (SBA Form 2202).
-Personal Financial Statement (SBA Form 413).
-Other information may also be requested.
 
• How to Apply – Disasterloan.sba.gov
Although a paper application and forms are acceptable, filing electronically is faster and more accurate.  There is no cost to apply and there is no obligation to take the loan if offered.  

 

The biggest reason for delays in processing the disaster loan application is due to missing or incomplete information.
 
• Visit SBA.gov/disaster for more information.
 
 

Small Business Resources/ Coronavirus

 
The legislation provides paid leave, establishes free testing, protects public health workers, and provides important benefits to children and families. 
 
 
NY DoL Shared Work Program applications available:
The program allows employees on a reduced schedule to collect unemployment for days not worked helping to offset reduced incomes. NY is apparently moving much more quickly than other states and the program is a great way to help reduce expenses while retaining employees. For more information visit