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Small Business Administration Disaster Loan Assistance

U.S. Small Business Administration Disaster Loan Assistance: Economic Injury Disaster Loans

 

SBA provides low-interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters. SBA disaster loans can be used to repair or replace the following items damaged or destroyed in a declared disaster: real estate, personal property, machinery and equipment, and inventory and business assets.

 

SBA provides low-interest, long-term loans for physical and economic damage caused by a declared disaster.

 

If you have suffered substantial economic injury and are one of the following types of businesses located in a declared disaster area, you may be eligible for an SBA Economic Injury Disaster Loan (EIDL):

  • Small Business
  • Small agricultural cooperative

  • Most private nonprofit organizations

 

Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.

 

The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company's financial needs, regardless of whether the business suffered any property damage.

 

The interest rate on EIDLs will not exceed 4 percent per year. The term of these loans will not exceed 30 years. The repayment term will be determined by your ability to repay the loan.

 

EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.

 

A business may qualify for both an EIDL and a physical disaster loan. The maximum combined loan amount is $2 million.

 

You can apply online for an SBA disaster assistance loan.

 

You must submit the completed loan application and a signed and dated IRS Form 4506-T giving permission for the IRS to provide SBA your tax return information.


Source: https://disasterloan.sba.gov/ela/