Client Alert: SBA Loan Program for Businesses Economically Impacted by Coronavirus
Date: March 20, 2020
The small business or private non-profit must have its principal office located in a state that has been declared a disaster area, which, currently, include D.C., Delaware, Maryland, Pennsylvania and Virginia. Loans under the EIDL program are for up to $2,000,000 with interest rates capped at 3.75% for small businesses, and 2.75% for private non-profits. Loan proceeds may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of Coronavirus’s impact.
The SBA will determine whether the small business or private non-profit applying for the loan is creditworthy and able to repay the loan. Loans that exceed $25,000 must be secured by collateral of the business or organization to the extent possible, or by the assets of the business’s owners. EIDL program loans generally provide long-term repayments in order to keep payments affordable, up to a maximum of 30 years, determined on a case-by-case basis, based upon each borrower’s ability to repay.
Applications may (and should) be submitted online.
For questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov.
We are also available to answer questions you may have about the application process and loan terms.
The information contained here is not intended to provide legal advice or opinion and should not be acted upon without consulting an attorney. Counsel should not be selected based on advertising materials, and we recommend that you conduct further investigation when seeking legal representation.