The U.S. Small Business Administration is now offering low-interest federal disaster loans for working capital to North Carolina small businesses suffering substantial economic injury as a result of the coronavirus (COVID-19).
SBA customer service representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.
“Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the oronavirus (COVID-19) since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said SBA Administrator Jovita Carranza.
“These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” Carranza added.
Eligibility for Economic Injury Disaster Loans is based on the financial impact of the coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private non-profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years, and are available to entities without the financial ability to offset the adverse impact without hardship.
Applicants may apply online and are encouraged to apply quickly. Loans under $25,000 are unsecured and may be processed in less than eight days. Larger loans are secured, and can take up to 21 days to approve. There is also a five-day disbursement period before payment, and other timing considerations.
The following information will be required:
- Completed SBA loan application (SBA Form 5 or SBA Form 5C for sole proprietorships)
- Tax Information Authorization (IRS Form 4506T) for the applicant, principals, and affiliates
- Complete copies of the most recent federal income tax return
- Schedule of Liabilities (SBA Form 2202)
- Personal Financial Statement (SBA Form 413)
- Other information also may be requested
Although a paper application and forms are acceptable, filing electronically is easier, faster and more accurate. Paper forms are available here. Completed paper applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
For more information or assistance call SBA’s Customer Service Center at (800) 659-2955 or email firstname.lastname@example.org for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339.
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