UPDATE: Eligible Small Businesses In New York State Affected By COVID-19 Can Now Apply For U.S. Small Business Administration (The “SBA”) Economic Injury Disaster Loans
During the COVID-19 outbreak, we will continue to be available to guide and assist our clients in obtaining the working capital necessary to replace the revenue that your New York State business has lost due to this unprecedented global event. If your business has suffered COVID-19 related economic injury and needs financial assistance in the form of working capital, the SBA program below is available qualified applicants.
SBA Economic Injury Disaster Loans (“EID Loans”)
- Effective March 19, 2020, EID Loans are available to all eligible small businesses with a tangible and significant physical presence in the declared disaster area (i.e. all counties in the State of New York)
- Up to $2,000,000 in assistance that can be used to pay fixed debts, payroll expenses, accounts payable, and other bills that are unable to be paid due to the economic impact of COVID-19, but the cap can be waived if the business is a major source of employment
- EID Loans cannot be used to refinance long term debt
- The SBA will determine the loan amount which is limited to the economic injury caused by the pandemic, less business interruption and other insurance recoveries available to the borrower
- Maximum interest rate of 3.75% for small businesses and 2.75% for non-profits (actual rates will be determined by a statutory formula but will not exceed the foregoing maximum amounts)
- Flexible payment terms of up to 30 years
- EID Loans in excess of $25,000 will require the pledge of collateral, if available. The SBA prefers real estate when available, but EID Loans will not be declined due to the lack of collateral
- More information regarding the EID Loans and how to apply can be found at: U.S. Small Business Administration
According to the SBA, the biggest delay in processing and funding EID Loans is missing or inaccurate information on the application. We are available to answer any questions that you may have during the application process.