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THE
ECONOMIC INJURY
DISASTER LOAN
aka "The DISASTER LOAN"
SOURCE/
LENDER
Lending direct from SBA, Apply with SBA​
QUALIFYING BUSINESSES
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Small Businesses (< 500 employees), including franchises
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501c Nonprofits (Types: 3, 4, 6, 7, & 19 only)
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Sole Proprietors; Self-Employed; Contractors
APPROVAL
BASIS & REQ
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Credit Score Satisfactory
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In business on 1/1/2020
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For loans > $25,000, some collateral is required, but not necessarily in value equivalent to amount borrowed
LOAN SIZE &
CALCULATION
Based on the borrower's "economic injury" (ordinary & necessary expenses borrower is unable to pay due to coronavirus impact).
​
Maximum loan is $2 million.
​
At borrower's request, a grant of up to $10,000 is provided by the SBA within 3 business days of loan application receipt. Approval or Denial of the loan has no bearing on receipt of this grant money, which does not have to be repaid.
INTEREST RATE
& TERM
Maximum Interest Rate: 4.00
Expected/Typical:
Businesses- 3.75
Non-profits- 2.75
Terms vary / case-by-case
Maximum Term: 30 Years
COLLATERAL REQUIREMENTS
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No Personal Guarantees
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No Collateral for loans < $25,000
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Some collateral is required for loans > $25,000, but
borrowers are not supposed to be denied based on inadequate value of available collateral. Loans above $200,000, may require personal guarantees.
FORGIVENESS OPPORTUNITIES
Only the initial grant (up to $10,000) need not be paid back.
APPROVED
FUND USES
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​Payroll, Accounts Payable, Fixed Debts, Utilities, Rent/ Mortgage, other routine bills
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Coronavirus-related FMLA Benefits/Paid time off
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Maintaining payroll (rather than laying off employees) during business disruptions or slowdowns
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Meeting cost increases due to supply chain interruptions
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Repaying obligations that cannot be met due to revenue loss
DISALLOWED
FUND USES
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Refinancing existing debt​
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Damage repairs
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Fed, State, local penalties
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Fines (Civil or Criminal)
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Dividends or dispursements to owners, partners, stockholders, or officers, except for reasonable compensation for services/work done for the company
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Payments on loans with another gov. agency (including SBA), or small business investment company
BACK
B
A
C
K
NEXT
N
E
X
T
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Refinancing existing debt​
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Damage repairs
-
Fed, State, local penalties
-
Fines (Civil or Criminal)
-
Dividends or dispursements to owners, partners, stockholders, or officers, except for reasonable compensation for services/work done for the company
-
Payments on loans with another gov. agency (including SBA), or small business investment company
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