THE

ECONOMIC INJURY

DISASTER LOAN

aka "The DISASTER LOAN"

SOURCE/

LENDER

Lending direct from SBA, Apply with SBA

QUALIFYING BUSINESSES

  • Small Businesses (< 500 employees), including franchises

  • 501c Nonprofits (Types: 3, 4, 6, 7, & 19 only)

  • Sole Proprietors; Self-Employed; Contractors

APPROVAL

BASIS & REQ

  • Credit Score Satisfactory

  • In business on 1/1/2020

  • 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

  • No Personal Guarantees

  • No Collateral for loans < $25,000

  • 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

  • Payroll, Accounts Payable, Fixed Debts, Utilities, Rent/ Mortgage, other routine bills

  • Coronavirus-related FMLA Benefits/Paid time off

  • Maintaining payroll (rather than laying off employees) during business disruptions or slowdowns

  • Meeting cost increases due to supply chain interruptions 

  • Repaying obligations that cannot be met due to revenue loss

DISALLOWED

FUND USES

  • Refinancing existing debt

  • 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

BACK

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A

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NEXT

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  • Refinancing existing debt

  • 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

CONTACT US

3425 Pelham Parkway

Pelham, AL 35124

(205) 829-1829

info@harmoncpafirm.com

Fax (205) 829-1199 

​​​​© 2019 by Loren Harmon for Harmon & Associates