What are the criteria for a loan approval?

Credit History-Applicants must have a credit history acceptable to SBA.

Repayment –SBA must determine that the applicant business has the ability to repay the SBA loan.

Eligibility- The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.

What are the collateral requirements?

• Economic Injury Disaster Loans over $25,000 require collateral.
  • SBA takes real estate as collateral when it is available.
  • SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available.

What kinds of small businesses can apply?

Examples of eligible industries include but are not limited to the following: hotels, recreational facilities, charter boats, manufactures, sports vendors, owners of rental property, restaurants, retailers, souvenir shops, travel agencies, and wholesalers. 

What other criteria is involved?

The applicant business must have a physical presence in the declared disaster area. An applicant’s economic presence alone in a declared area does not meet this requirement. The physical presence must be tangible and significant.  Merely having a P.O. Box in the disaster area would not qualify as a physical presence.

SBA’s Economic Injury Disaster Loan (EIDLs) funds come directly from the U.S. Treasury.

Applicants do not go through a bank to apply.  Instead apply directly to SBA’s Disaster Assistance Program at: DisasterLoan.sba.gov

There is no cost to apply.

There is no obligation to take the loan if offered.

The maximum unsecured loan amount is $25,000.

Applicants can have an existing SBA Disaster Loan and still qualify for an EIDL for this disaster, but the loans cannot be consolidated.

• Completed SBA loan application (SBA Form 5 or 5C).
• Tax Information Authorization (IRS Form 4506T)

for the applicant, principals and affiliates.

• Complete copies of the most recent Federal Income Tax Return.
• Schedule of Liabilities (SBA Form 2202).
• Personal Financial Statement (SBA Form 413).

               Other Information may also be requested.

*Although a paper application and forms are acceptable, filing electronically is easier, faster and more accurate.

What are some of the businesses that are ineligible for an Economic Injury Disaster Loan?

• Agricultural Enterprises -If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance.
• Religious Organizations
• Charitable Organizations
• Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities)
• Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of 1/3 criteria above.

Key websites:

• Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela.

• Paper loan applications can be downloaded from www.sba.gov/disaster.  Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155. 
• Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955
  (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov. 
• Free assistance with reconstructing financial records, preparing financial statements and submitting the loan application is available from any of SBA’s partners: Small Business Development Centers (SBDCs), SCORE, Women’s Business Centers (WBC), and Veteran’s Business Outreach Centers and local Chambers of Commerce. 
• For the nearest office, visit: https://www.sba.gov/local-assistance
• Recheck the filing requirements to ensure that all the needed information is submitted.
• The biggest reason for delays in processing is due to missing information.  Make sure to complete all filing requirements before submitting the application and forms.
• If more funds are needed, applicants can submit supporting documents and a request for an increase.  If less funds are needed, applicants can request a reduction in the loan amount.
• If the loan request is denied, the applicant will be given up to six months in which to provide new information and submit a written request for reconsideration.