SBA Economic Injury Disaster Loans for Small Businesses
SBA Administrator Jovita Carranza has approved a statewide disaster declaration for NY. Eligible small businesses may now apply for SBA Economic Injury Disaster Loans (EIDL) online at https://disasterloan.sba.gov/
Please review the attached fact sheet with important information about the declaration and EIDL requirements. Businesses can take advantage of free assistance offered by SBA’s network of Resource Partners for help with preparing their loan applications. They may visit www.sba.gov/local-assistance to find local help. The NYS Small Business Development Center network recommends submitting a request for assistance online at http://nyssbdc.org/
Who is Eligible?
All counties within the State of New York; the contiguous Connecticut counties of: Fairfield and Litchfield; the contiguous Massachusetts county of: Berkshire; the contiguous New Jersey counties of: Bergen, Hudson, Passaic and Sussex; the contiguous Pennsylvania counties of: Bradford, Erie, McKean, Pike, Potter, Susquehanna, Tioga, Warren and Wayne; and the contiguous Vermont counties of: Addison, Bennington, Chittenden, Grand Isle and Rutland.
Application Filing Deadline: December 21, 2020
What is Available?
Disaster Loan Assistance
Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay the loan.
• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available.
SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 3.750 percent.
The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the
financial condition of each borrower, which in turn will determine the loan term.
Loan Amount Limit:
The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.
Loan Eligibility Restrictions:
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.
Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.
Economic injury disaster loans cannot be used to refinance long term debts.
To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers
whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA
requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the
maximum insurance available.
Applicants may apply online, receive additional disaster assistance information and download applications here.
Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email email@example.com for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement
Center, 14925 Kingsport Road, Fort Worth, TX 76155.