By: Edward U. Lee III, Jordan M. Halle of Whiteford Taylor Preston
Published: March 20, 2020
The U.S. Small Business Administration's (“SBA”) Economic Injury Disaster Loan (“EIDL”) program provides low interest loans to small businesses suffering substantial economic injury as a result of the Coronavirus.
The small business or private non-profit must have its principal office located in a state that has been declared a disaster area, which, currently, include D.C., Delaware, Maryland, Pennsylvania and Virginia. Loans under the EIDL program are for up to $2,000,000 with interest rates capped at 3.75% for small businesses, and 2.75% for private non-profits. Loan proceeds may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of Coronavirus’s impact.
The SBA will determine whether the small business or private non-profit applying for the loan is creditworthy and able to repay the loan. Loans that exceed $25,000 must be secured by collateral of the business or organization to the extent possible, or by the assets of the business’s owners. EIDL program loans generally provide long-term repayments in order to keep payments affordable, up to a maximum of 30 years, determined on a case-by-case basis, based upon each borrower’s ability to repay.
Applications may (and should) be submitted online.
For questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov.
ADDITIONAL INFORMATION
Since this article was written,
SBA has published several press releases related to this matter.
On March 17,
SBA issued press releases pertaining to the following states.
Alabama - AL 16364 - SBA Offers Disaster Assistance to Alabama Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Alaska - AK 16386-01 SBA Offers Disaster Assistance to Alaska Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Arizona - AZ 16350-01 SBA Offers Disaster Assistance to Arizona Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Arkansas - AR 16372-01 SBA Offers Disaster Assistance to Arkansas Small Businesses Economically Impacted by the Coronavirus (COVID-19)
California - CA 16332-02 SBA Amends Disaster Declaration: Disaster Assistance Now Available to all California Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Colorado - CO 16367-01 SBA Offers Disaster Assistance to Colorado Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Connecticut - CT 16335 - SBA Offers Disaster Assistance to Connecticut Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Delaware - DE 16342 - SBA Offers Disaster Assistance to Delaware Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Florida - FL 16353 - SBA Offers Disaster Assistance to Florida Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Georgia - GA 16347 - SBA Offers Disaster Assistance to Georgia Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Hawaii - HI 16369-01 SBA Offers Disaster Assistance to Hawaii Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Idaho - ID 16379-01 SBA Offers Disaster Assistance to Idaho Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Illinois - IL 16370 - SBA Offers Disaster Assistance to Illinois Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Indiana - IN 16348 - SBA Offers Disaster Assistance to Indiana Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Iowa - IA 16382-01 SBA Offers Disaster Assistance to Iowa Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Kansas - https://www.kctv5.com/coronavirus/small-business-administration-approves-kansas-and-missouri-s-requests-for/article_40da2762-6bb8-11ea-bb33-a78f83540f7e.html
Kentucky - KY 16377 - SBA Offers Disaster Assistance to Kentucky Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Louisiana - LA 16351-01 SBA Offers Disaster Assistance to Louisiana Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Maine - ME 16334 - SBA Offers Disaster Assistance to Maine Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Maryland - MD 16376 - SBA Offers Disaster Assistance to Maryland Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Massachusetts - MA 16344 - SBA Offers Disaster Assistance to Massachusetts Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Michigan - MI 16356 - SBA Offers Disaster Assistance to Michigan Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Minnesota - MN 16365 - SBA Offers Disaster Assistance to Minnesota Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Mississippi - MS 16362 - SBA Offers Disaster Assistance to Mississippi Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Missouri - MO 16387-01 SBA Offers Disaster Assistance to Missouri Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Montana - MT 16340-02 SBA Amends Disaster Declaration Disaster Assistance Now Available to all Montana Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Nebraska - NE 16371-01 SBA Offers Disaster Assistance to Nebraska Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Nevada - NV 16341-02 SBA Amends Disaster Declaration: Disaster Assistance Now Available to all Nevada Small Businesses Economically Impacted by the Coronavirus (COVID-19)
New Hampshire - NH 16343 - SBA Offers Disaster Assistance to New Hampshire Small Businesses Economically Impacted by the Coronavirus (COVID-19)
New Jersey - NJ 16349 - SBA Offers Disaster Assistance to New Jersey Small Small Businesses Economically Impacted by the Coronavirus (COVID-19)
New Mexico - NM 16339-02 SBA Amends Disaster Declaration Disaster Assistance Now Available to all New Mexico Small Businesses Economically Impacted by the Coronavirus (COVID-19)
New York - NY 16346 - SBA Offers Disaster Assistance to New York Small Businesses Economically Impacted by the Coronavirus (COVID-19)
North Carolina - NC 16345 - SBA Offers Disaster Assistance to North Carolina Small Businesses Economically Impacted by the Coronavirus (COVID-19)
North Dakota - ND 16366-01 SBA Offers Disaster Assistance to North Dakota Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Ohio - OH 16355 - SBA Offers Disaster Assistance to Ohio Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Oklahoma - OK 16373-01 SBA Offers Disaster Assistance to Oklahoma Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Oregon - OR 16378-01 SBA Offers Disaster Assistance to Oregon Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Pennsylvania - PA 16360 - SBA Offers Disaster Assistance to Pennsylvania Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Rhode Island - RI 16337 - SBA Offers Disaster Assistance to Rhode Island Small Businesses Economically Impacted by the Coronavirus (COVID-19)
South Carolina - SC 16352 - SBA Offers Disaster Assistance to South Carolina Small Businesses Economically Impacted by the Coronavirus (COVID-19)
South Dakota - SD 16374-01 SBA Offers Disaster Assistance to South Dakota Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Tennessee - TN 16375 - SBA Offers Disaster Assistance to Tennessee Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Texas - TX 16381-01 SBA Offers Disaster Assistance to Texas Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Utah - UT 16338-02 SBA Amends Disaster Declaration: Disaster Assistance Now Available to all Utah Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Vermont - VT 16361 - SBA Offers Disaster Assistance to Vermont Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Virginia - VA 16359 - SBA Offers Disaster Assistance to Virginia Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Washington - WA 16333-02 SBA Amends Disaster Declaration: Disaster Assistance Now Available to all Washington Small Businesses Economically Impacted by the Coronavirus (COVID-19)
West Virginia - WV 16354 - SBA Offers Disaster Assistance to West Virginia Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Wisconsin - WI 16363 - SBA Offers Disaster Assistance to Wisconsin Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Wyoming - WY 16368-01 SBA Offers Disaster Assistance to Wyoming Small Businesses Economically Impacted by the Coronavirus (COVID-19)
District of Columbia - DC 16336 - SBA Offers Disaster Assistance to District of Columbia Small Businesses Economically Impacted by the Coronavirus (COVID-19)
American Samoa - AS 16389-01 SBA Offers Disaster Assistance to American Samoa Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Commonwealth of the Northern Mariana Islands - MP 16390-01 SBA Offers Disaster Assistance to Commonwealth of the Northern Mariana Islands Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Guam - GU 16388-01 SBA Offers Disaster Assistance to Guam Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Puerto Rico - PR 16380 - SBA Offers Disaster Assistance to Puerto Rico Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Virgin Islands – VI 16383 - SBA Offers Disaster Assistance to U.S. Virgin Islands Small Businesses Economically Impacted by the Coronavirus (COVID-19)
Edward U. Lee III is Partner and Co-Chair of Business and Corporate Law Section at Whiteford Taylor Preston. He is a trusted advisor to middle market companies on complex commercial, financial and transactional matters, regularly advising clients on deals ranging from small acquisitions to transactions valued in the hundreds of millions. He can be reached at elee@wtplaw.com or 410.347.8704.
Jordan M. Halle is an Associate at
Whiteford Taylor Preston; his practice focuses on business and corporate law, partnership and individual tax matters, franchising law and corporate transactional matters. He can be contacted at
jhalle@wtplaw.com or 443.263.8205