Disaster Loan Assistance: Who is Eligible?

The U.S. Small Business Administration (SBA) has declared all counties within the States of New Jersey, New York, and Pennsylvania, as being eligible for disaster loans as a result of COVID-19.

SBA’s Economic Injury Disaster Loans (EIDLs) offer up to $2 million in assistance per small business. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.

There is a three-step process to apply for an EIDL:

1. Apply online at the SBA’s secure website, by mail, or in person at a disaster center.
2. Your property will then be verified, and a loan processing decision will be made.
3. If approved, the SBA will prepare and send you a loan closing document for execution, and thereafter funds will be disbursed.

For specific disaster loan information, as well as required documentation for completing a loan application, please visit the SBA website.

Author: CJ Stroh | cstroh@withum.com