Economic Injury Disaster Loans Administered Through the SBA

The Small Business Administration (SBA) has implemented an Economic Injury Disaster Loan program.

The program provides low or no interest loans up to $2MM for working capital needs or normal business operating expenses through the recovery period.  The business needs to be in a designated disaster area like Pennsylvania.  It applies to all entity types including sole proprietorships.

Use this link to the SBA for information on COVID-19 related resources including applications that can be made via the website or through the mail.

An entity other than sole proprietorship needs to complete a Disaster Business Loan Application (SBA Form 5).  Again, it can be completed through the website using a different form than for sole proprietorships.

Additional requirements are:

• Tax information authorization (SBA Form 4506T) for each principal owning 20% or more of the applicant, and each owner of 50% or more of any affiliate business.
• Form 5 schedules completed.
• Federal tax returns (if the tax return for the last completed year has not been filed, a year end balance sheet and Profit/Loss report will be needed.
• A Personal Financial Statement (PFS) (SBA Form 413 can be used) for each principal owning 20% or more of the applicant.
• Schedule of Liabilities listing all fixed debts (SBA Form 2202 can be used).

For additional information contact Steve Bovan.