How to apply for a federal disaster loan
Compiled from a North Coast Small Business Development Center press release:
The U.S. Small Business Administration is now accepting applications for low-interest federal disaster loans for working capital (Economic Injury Disaster Loans) for small businesses and private, non-profit organizations in designated counties of California and other states to help alleviate economic injury caused by the Coronavirus (COVID-19). The SBA COVID19 Disaster Loan Program is open for applications in California including Humboldt and Del Norte counties.
The basics
• The loan program is for businesses who can demonstrate their “economic injury is substantial and is a direct result of the declared disaster”
• 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.
• Loans are up to $2 million per business with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. 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%.
• In reviewing your application the SBA will determine if you’re eligible as a disaster-affected business, and they will also check whether you have available credit elsewhere, which might affect the special rate.
• Since decisions are made on a case by case basis, once the application is in it could be funded in a few days or it might take much longer.
• The latest information available is that you should still be able to apply for an economic injury disaster loan even if you already have a separate SBA loan.
Start your application
Start your application at the SBA Online Disaster Loan Assistance Portal at https://disasterloan. sba.gov/ela/.
You can also apply for business consulting online at https://www.northcoastsbdc.org/services/ one-one-advising-northcoast or contact admin@ northcoastsbdc.org to be paired with a SBDC business adviser who will help you through the application.
Decisions are made case by case and first come, first served, so download the Disaster Loan Paper Application Form at https://disasterloan.sba. gov/ela/Information/Index and start pulling together your financial data ASAP:
• federal tax returns for the business
• current business financial statements — profit & loss, balance sheets
• personal financial statement
• schedule of liabilities (what you currently owe)
• monthly sales figures
• financial forecasts for sales, cost of goods sold (COGS), etc., during period affected by the disaster
For additional information, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@ sba.gov or visit https:// www.sba.gov/fundingprograms/disaster-assistance.