SBA Economic Injury Disaster Loan

By: Staff Thursday, March 26, 2020

The Connection hosted a conference call Wednesday, March 25, with the Oklahoma division of the U.S. Small Business Administration to learn more about the disaster loans available to cover business losses from the COVID-19 virus.

The disaster declaration for COVID-19 losses includes all counties in Oklahoma as of March 21, 2020. A business must have a physical presence in Oklahoma to qualify through the Oklahoma disaster declaration.

John Veal and Cindi Carter with the Oklahoma SBA office said the process for Economic Impact Disaster Loans (EIDL) continues to change daily, so it is important that small business owners keep checking the website.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela.

Applying for a loan is a three-step process, and business owners are urged not to use the Chrome web browser when applying. The site prefers Microsoft Edge or Internet Explorer.

The site is experiencing a high volume of traffic and is currently down for maintenance. But even when it comes back up, the SBA is expecting more than 500,000 small business owners to apply for the loans. SBA employees are suggesting that business owners may want to apply and upload their documents after midnight so they will encounter less traffic.

The Economic Impact Disaster Loans are available to most small businesses and private nonprofit organizations. The interest rate will be 3.75% for small businesses and 2.75% for nonprofits.

The loan is intended to cover capital costs and operating expenses, such as fixed debts, payroll, accounts payable and other bills. In the loan application, businesses will enter operating expenses, estimated sales for the year and estimated loss for 12 months, and the SBA will determine the loan amount (up to $2 million) and repayment terms (up to 30 years).

Other information on the loans:

  • You don’t have to take the loan even if you apply and are approved.
  • Loans under $25,000 are unsecured. Loans over $25,000 require collateral.
  • A business has to have been in business since Feb. 1 to qualify. (You don’t have to be in business for a year for this loan.)
  • The deadline to apply for a loan is Dec. 21, 2020.
  • Borrowers still paying back previous SBA disaster loans will receive an automatic deferment through Dec. 31, 2020.

Questions?

SBA Disaster Office
www.sba.gov/disaster
1-800-659-2955
Disastercustomerservice.sba.gov

Oklahoma District Office
Website: www.sba.gov/OK
Phone: 405-609-8000
Email: Oklahoma_DO@sba.gov

If you would like to participate in an upcoming call, the Oklahoma Department of Commerce is hosting more teleconferences on the SBA’s Economic Injury Disaster Loan Program. Registrants will receive a link to the call in the confirmation email. https://www.okcommerce.gov/oklahoma-small-business-teleconference-sba-economic-injury-disaster-loan-application-and-program/

Upcoming Calls

Thursday, March 26, 2020
2:00 PM – 3:00 PM
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Tuesday, March 31, 2020
2:00 PM – 3:00 PM
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Thursday, April 2, 2020
2:00 PM – 3:00 PM
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Article by: Staff
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