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SBA to Provide Disaster Assistance Loans for Small Businesses Impacted by Coronavirus (COVID-19)

Carly Swanson

March 19, 2020

Our thoughts go out to all of our friends in the small business community. You’ve undoubtedly heard of the $50 billion allocated to the SBA for Covid-19 related disaster relief. Their mandate is to directly provide loans of up to $2 million to affected businesses nationwide at an interest rate of 3.75%. Whether or not your business has been impacted so far, you should be applying for this loan right now. Applications will be processed in the order they are received and there’s going to be tremendous backlog - You want to be as close to the front as possible. Think of this like the rush to stock up on hand sanitizer and toilet paper.

Unlike a traditional SBA loan that’s issued by a bank, these loans will be issued by the SBA themselves so you’ll be applying with them directly. Listed below are the appropriate links you’ll need to get started. It’s important that the application is submitted correctly – otherwise it will get kicked out and will lead to delays.


- Information Specific to your state:

https://disasterloan.sba.gov/ela/Declarations/Index

- Loan Overview, Process and Required Docs:

https://disasterloan.sba.gov/ela/Documents/Three_Step_Process_SBA_Disaster_Loans.pdf

- Loan Application:

https://disasterloan.sba.gov/ela

- Loan Application Forms:

https://disasterloan.sba.gov/ela/Information/PaperForms

 

Please note – The SBA loan is not going to provide immediate relief. Per the SBA website, their goal is to make a decision on each loan application within 2-3 weeks. Upon approval, an initial disbursement of $25,000 will be made within 5 days.



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