What Small Businesses Need to Know to Apply for Disaster Relief – COVID-19

Posted in Blog on March 19, 2020

Lakeshore Advantage Business Solutions Manager Greg King put together the following summary of the Small Business Association disaster relief loans, below: 
 
SBA Economic Injury Disaster Loan
  • Provides small businesses and nonprofits with working low-interest capital loans of up to $2 million – out of an available $1 billion - that can provide economic support to small businesses to help overcome the temporary loss of revenue.
    • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid.
    • The interest rate is 3.75% for small businesses and 2.75% for nonprofits without credit available elsewhere; businesses with credit available elsewhere are not eligible.
    • up to $25k unsecured, over $25k collateral, personal guarantee by founder.
    • Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
    • Decision made within 2-3 weeks of application submission, will take one week to close.
  • The general definition for small business from SBA is less than 500 employees. Small business definition by NAICS code can be found HERE and the SBA’s Size Standards Tool can be found HERE for business owners who want to check on their own.  
  • The online link to apply is HERE and the list of all paper documents can be found HERE. A list of all materials necessary to complete the application is HERE.
  • Contact Liz Hoffswell with West Michigan SBDC with questions. 


 



Visit lakeshoreadvantage.com/covid-19 for a complete list of Business Resources