Navigating Business Relief Options with the SBA
Date postedMarch 24, 2020
View recording of a webinar held with William Furman from the SBA on Wed, Mar 24 at 3 pm. ET.
Additional information regarding the SBA’s Economic Disaster Relief Program is shared below including application completion tips and SBA’s FACT SHEET.
Application Completion Tips:
- Turn around period on the loan is expected to be at least 3 weeks and could take longer.
- The website is experiencing unprecedented volumes of applications so utilizing the online system during off-peak hours is advisable. Off-peak is considered to be between 7 PM EDT and 7 AM EDT.
- Write down your username and password and your application number once the submission is complete.
- This program provides a lump sum payment to the business owner. The owner does not have to accept the payment and any unused portions can be remitted to the SBA early. There is no prepayment penalty.
- The SBA will determine the amount the business receives. There is a comment box on page 3 of application Form 5 where an explanation of unusual circumstances can be communicated if needed.
- Acceptable credit history, no delinquent taxes or child support payments is required.
- This program is not to be used to consolidate debt nor for business growth plans.
- The application can be submitted on paper and via the U.S. mail service but it will slow down the processing of the application considerably.
- There is a help desk phone number available but wait time is long and you may not be able to get through. SC businesses are encouraged to contact their local and state SBA resources to help answer questions.
- Applicants are encouraged to download and print the forms first then fill out the information so when you access the online system you have the details readily available to you.
- The EIDL program is separate from the SBA’s 7(a) loan program available from state and local bank partners.
- The loan is issued to the business so owners with multiple businesses would need to fill out multiple applications.
- The application time frame is anytime before December 21, 2020, for the EIDL program related to Covid-19.
- Once the application is submitted, the information in the various documents cannot be revised. If an application is denied, the applicant has 6 months to then resubmit additional information.
- The repayment of the loan is deferred for 12 months. The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years.