sba loans - Economic Injury Disaster Loan (EIDL)
Greetings to our Colton Businesses from your Mayor and Council Members.
We are all feeling the impact of business closures and the following loss in revenue, but none more acutely than you, Colton’s business owners and their employees.
Please consider the information we are sharing today to see if it might be of benefit to your business in this very difficult time. The United States Small Business Administration (“SBA”) is making loans available at low interest rates, and with a repayment time of up to 30 years, for those without the financial ability to offset the adverse impact without hardship.
More information & details from the Mayor here.
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). These loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing. Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act, an Economic Injury Disaster Loan declaration. SBA has issued an Economic Injury Disaster Loan (EIDL) declaration for the State of California and certain small businesses in San Bernardino County are eligible to apply online for EIDL assistance. To verify if a small business is eligible for EIDL and to apply visit: SBA.gov/disaster.
SBA assists small businesses with accessing federal resources, such as working capital loans and counseling, and navigating their preparedness plans. Find more information on SBA’s available resources at: SBA.gov/Coronavirus.
Small businesses are encouraged to do their part to keep their employees, customers and themselves healthy. The Centers for Disease Control and Prevention (CDC) offers the most up-to-date information on COVID-19, as well as Guidance for Businesses and Employers to Plan and Respond.
Economic Injury Disaster Loan details:
o Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).
o SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s Governor to submit the request for Economic Injury Disaster Loan assistance.
o Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available to all affected communities as well as updated on our website: SBA.gov/disaster.
o SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
o 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. 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%.
o SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
o SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.
o For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail firstname.lastname@example.org.