COVID-19: SBA Disaster Assistance Loans [What It Is, Who Qualifies, And How To Apply]

March 19, 2020

This article is for educational and entertainment purposes only. This is not legal advice and should not be relied on as such. Every case is different. Consult a licensed professional in your state. Viewing this website or its content does not create an attorney-client relationship with Lyda Law Firm or any of its lawyers.

The SBA is giving out loans to businesses affected by COVID-19 through the Small Business Administration Economic Injury Disaster Loan Program.

The first thing to know about this loan program is that information is changing every day. For the most up-to-date information, please visit the SBA website.

The loans go up to $2,000,000 and they are capped at a 4% interest rate. Some businesses and nonprofits will qualify for lower than 4% interest. The term of the loan can go up to 30 years, but that is determined on a case by case basis.

Application Process & Eligibility Requirements

In order for your business apply, your state has to be eligible for one of these loans. Some governors have already applied, others are in the process, others have not applied yet. Once your state is eligible for these economic injury disaster loans, then you can apply for the loan.

After applying, the SBA will assess your credit-worthiness and your ability to repay the loan. If you’re applying for over $25,000, you will need to put up some collateral. If you’re applying for less than that, you do not need collateral.

If you have ever had an SBA loan in the past and you’ve been deemed noncompliant for one reason or another,  you will not be eligible for these loans. Furthermore, the funds received through these loans cannot be used to pay off existing long-term debt.

So that’s just a brief rundown of the Small Business Administration’s Economic Injury Disaster Loan Program. It’s changing every day, so check out the SBA’s website for developments.

California

855.855.9400

Los Angeles area:
10100 Venice Blvd.
Culver City, CA 90232

San Francisco:
1390 Market St., Ste. 200
San Francisco, CA 94102

Washington

206.426.1960

Seattle area:
22722 29th Drive SE, Ste. 100
Bothell, WA 98021

Texas

737.520.5770

106 E. 6th St., #900-125
Austin, TX 78701

Serving West Texas and the Permian Basin:
223 W. Wall St., Ste. 299
Midland, TX 79701

The information provided on this website is not legal advice. Visitors to this website should not act upon information contained in this website without obtaining professional advice. Neither viewing this website nor sending an email or other communication to the Lyda Law Firm, Lyda Group, or any affiliates creates an attorney-client relationship between you and the firm. Unless the firm has agreed to represent you, any communication from you to the firm by email or otherwise may not be treated as confidential or privileged. This site and its contents may be construed as attorney advertising. Any testimonials or endorsements do not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter.
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