Many small businesses and independent contractors are facing lost customers, lower than normal sales, or total shutdowns due to COVID-19. If you have or expect to experience a loss of income due to COVID-19, you could be entitled to receive assistance.
Impacted small business owners are often eligible for low-interest loans through the Small Business Association (SBA) Disaster Loan program. These loans can be used to provide small businesses with working capital up to $2,000,000 to help offset a loss of business income.
In addition to small business owners, independent contractors or 1099 employees may also be eligible for assistance.
If you are an independent contractor or own an impacted small business in Louisiana, you can apply online for a COVID-19 loan through the SBA to help your business through this unprecedented time.
To apply online visit: disasterloan.sba.gov.
Application Filing Deadline: December 21, 2020
Credit Requirements:
• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay the loan.
• Collateral – Collateral is required for all loans over $25,000. SBA takes real estate as collateral when it is available.
(SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.)
Interest Rates:
The interest rate is fixed for the life of the loan and will not exceed 3.75 percent.
Loan Terms:
Loan terms are available up to a maximum of 30 years. SBA will determine the monthly payment and loan term based upon the specific financial circumstances with each applicant.
Loan Amount Limit:
The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 limit.
Loan Eligibility Restrictions:
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.
Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.
Refinancing:
Economic injury disaster loans cannot be used to refinance long term debts.
Where To Apply?
Businesses with questions about applying may call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information.
Due to the high volume of applications, the quickest way to apply or get additional information is at disasterloan.sba.gov.
Two helpful downloads from the SBA web site include the Resources for Businesses and the Fact Sheet available on the SBA web site.
How Can We Help?
We would love to hear from you and how your business is doing. Let us know how we can help you through this challenging time. Simply give us a call or send us a message below.
