Image Credit: www.sba.gov/coronavirus
We know that the current Coronavirus (COVID-19) pandemic has not only had a major impact on our personal lives but also on the economy and especially on small businesses. There is news daily of possible legislation to help those impacted by COVID-19. Some of this legislation is aimed at alleviating the economic hardship that is inevitable at this time.
This week, the President signed into law the Coronavirus Preparedness and Response Supplemental Appropriations Act. As provided by this Act, the Small Business Association (SBA,) issued an Economic Injury Disaster Loan Declaration. This Declaration makes low-interest loans available to small businesses and private, non-profit organizations, of up to $2 million, to help alleviate economic injury caused by COVID-19. Potential uses for the loans include paying fixed debts, payroll, accounts payable, and other bills.
The loans are available to states that have made emergency declarations. Governor Greg Abbott requested this designation and, as of March 20th, the SBA recognized the designation and made applications for these loans available to Texas businesses. Please follow this link for more information: SBA Disaster Assistance in Response to the Coronavirus.
Here are a few things to have ready when filling out an application:
- Business tax returns for the two most recent years filed
- 2019 year-end financial statements
- Personal financial statements for any owner with over 20% interest in the entity
- Current Note Schedule (Lender, Balance, Payment, Terms, Collateral)
We hope these loans help get many of our small businesses through this trying time. As always, we will be monitoring the situation and will keep you informed of any developments. Please contact us with any questions 210-829-1300.
Visit the SBA Webinar to see how to apply for these loans: SBA’s Economic Injury Disaster Loan Program for Businesses Impacted by COVID-19 – Learn About It and How to Apply