Disaster Loan Assistance for Small Businesses
The federal Small Business Administration (SBA) will be releasing new guidance regarding existing as well as new Disaster Loan Assistance. In the meantime, here are some tips for getting started:
Repayment Terms: If you are approved for a new SBA Disaster Assistance Loan, you will not need to begin repayment for the first year. In other words, no repayment on the loan is required until 12 months after your loan is approved.
Existing SBA Loans: If you have an existing SBA Loan, you can contact your lender to request a deferment on your loan for 90 to 120 days.
New Business: Although the application guidance indicates you will need tax returns for the past three years, new businesses that have opened in less than that period of time are still eligible to apply. Be prepared to provide personal tax information for all business owners.
$25,000 Loans: The verification documentation burden for the SBA disaster loan assistance is much less for loans of $25,000 or less.
Limited Funding for Disaster Loan Assistance: Please note that these funds will be provided on a first-come-first-served basis until funds run out. If you are interested in applying, you should move to do that as soon as you have all your documentation prepared. The response you receive will be faster the earlier you apply. The loan application process is described online here and attached.
Registration: If you have never applied for an SBA loan, you will need to register online here.
Begin your application: If you are registered, you sign-in to begin your online application here.
Missing required documents: If your application is missing any of the information or required documents, your application will be bumped to the end of the queue, which could delay the review of your application for more than a month.
SBA assistance: If you need any assistance with your loan application, you can contact SBA at 1-800-659-2955 (7 a.m.-9 p.m. every day) or disastercustomerservice@sba.gov. Here is contact info for Local Assistance for DC Business.
Key to a successful application: Be sure you provide all required documentation, do not skip any information in required fields in the online application, work with your accountant to be sure your documents are accurate and clear, demonstrate cash flow prior to the current crisis that will be sufficient for repayment, and take the time you need to do a careful review before submitting. Don't hesitate to reach out to SBA directly with any questions before you submit.
Pease note that the SBA has never had a situation in which it is processing disaster loans from businesses across the country. In the past, disasters have been geographically limited. Due to this volume, businesses may experience delays on their applications.