The Small Business Administration (SBA) approves Gov. Wolf request for economic disaster loans for small businesses and non-profits.
More information can be found on SBA’s webpage https://disasterloan.sba.gov/ela/, and a one pager on the EIDL program is attached. Businesses should visit http://sba.gov/disaster to apply for Economic Injury Disaster Loans (EIDL).
Criteria for Economic Injury Disaster Loans
Information from the SBA website regarding loan criteria:
If your business has suffered substantial economic injury and are one of the following types of businesses located in a declared disaster area, you may be eligible for an SBA Economic Injury Disaster Loan (EIDL):
- Small Business
- Small agricultural cooperative
- Most private nonprofit organizations
Loan amounts and use
Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.
Eligibility and Terms
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. 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..
EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
A business may qualify for both an EIDL and a physical disaster loan.
The maximum combined loan amount is $2 million.
Collateral: Loans under $25,000 will not require collateral. Loans over $25,000 will require collateral
Next Steps
To apply for the loan online- ://disasterloan.sba.gov/ela/
For assistance with preparing your application, please contact:
Robin Burtner
Director, Shippensburg University SBDC
Shippensburg University
reburtner@ship.edu