SBA is offering low-interest federal disaster loans for working capital to New York State

SBA is offering low-interest federal disaster loans for working capital to New York State

SBA is offering low-interest federal disaster loans for working capital to New York State (a) small businesses or (b) private nonprofit organizations that are suffering substantial economic injury as a result of the Coronavirus.

DETAILS:

  • Your business must be experiencing a business loss due to COVID-19
  • Entities may qualify for loans up to $2 million
  • Maximum unsecured loan amount is $25,000
  • Interest rates:  3.75% for small business; 2.75% for private nonprofits
  • Term – up to 30 years
  • Use of funds:  working capital, paying fixed debts, payroll, accounts payable, other bills that could have been paid had the disaster not occurred
  • Loans are NOT intended to replace lost sales or profits or for expansion
  • There is no obligation to take the loan if offered
  • Applicants can have an existing SBA loan or other SBA loan and still qualify for this disaster loan. Loans cannot be consolidated.

CREDIT REQUIREMENTS:

  • Acceptable credit history
  • Proven ability to repay the loan
  • Collateral for loans over $25,000

BEFORE YOU BEGIN THE APPLICATION PROCESS, we strongly encourage you to complete all of the necessary forms. We would like to also manage expectations: it is NOT a quick process. 

LOAN APPLICATION PROGRAM:

You will need to set up a username & password at the SBA loan application program:

https://disasterloan.sba.gov/ela

You will be applying for an Economic Injury Disaster Loan (EIDL).

READ and FOLLOW INSTRUCTIONS:  If you have any questions, fill out this brief form, and the SBDC office nearest you will contact you as soon as possible:

http://www.nysbdc.org/selector/ReqForCons/formo.aspx

LOAN APPLICATION PROCESS:

READ ALL INSTRUCTIONS. SIGN IN ALL APPROPRIATE PLACES.

The basic forms needed for filing are:

(for sole proprietors/home-based businesses, fill out Form 5c)

  • IRS Form 4506-T completed and signed by Applicant business, each
    principal owning 20% or more of the applicant business, each general
    partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include parent company, subsidiaries, and/or businesses with common ownership or management).
  • Completed copies of the most recent Business Federal Income Tax return – all pages
  • Schedule of Liabilities (SBA form 2202)
  • Personal Financial Statement (SBA form 413) – each principal owning 20% or more of the applicant business, each general partner or managing member.

Other information that may be requested:

These additional forms will likely be requested at some point in the application process. If you have an opportunity to upload them onto the online platform in the process we would recommend you do so. This can save you time.

  • Completed copy, including all schedules, of the most recent personal Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate (affiliates include parent company, subsidiaries, and/or businesses with common ownership or management).
  • If you do not have completed 2019 business tax returns, submit year-end profit and loss statement and balance sheet for 2019.
  • Current year-to-date profit and loss statement
  • Monthly Sales Figure (SBA form 1368)

HELPFUL TIPS:

  • The main reason applications are rejected is due to incomplete information. If you need help, contact the New York SBDC center nearest you http://www.nysbdc.org/selector/ReqForCons/formo.aspx
  • Also, be sure to sign in all of the appropriate places
  • Keep these documents saved where you can easily access them.Other programs that may become available will likely ask you for these same documents.
  • When registering for the SBA loan program
  • Write down your user name and password
  • Write down the answers to your security questions
  • You will be applying for Economic Injury Disaster Loan – (EIDL)
  • Continually save as you work through the application process (in the upper right side of the screen)
  • When in doubt give more information, not less
  • Supply an additional contact method. You do not want to miss their calls or communication.
  • Answer honestly

 

By | 2020-03-25T11:41:47-04:00 March 25th, 2020|News|0 Comments

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