Ways to prepare for applying for an Economic Injury Disaster Loan

Ways to Prepare

Collect Documents Needed to Apply for an Economic Injury Disaster Loan

On Tuesday afternoon, Governor Mike DeWine and Lt. Governor Jon Husted sent a letter and application to the U.S. Small Business Administration to qualify the State of Ohio for the Economic Injury Disaster Loan program. As we wait there are things that we can do to prepare. Business owners can begin collecting the paperwork that will be needed when the application process opens. This process could be long, its best to be prepared.

Please understand that these will be loans, requiring repayment. 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. Loan rates are expected to be 3.75% for businesses and 2.75% for non-profits with long-term repayments in order to keep payments affordable. Terms will be determined on a case by case basis.

We know these are challenging times, and we encourage everyone to be patient with the process as there will be an overwhelming amount of applications.

Documents you need to complete application

• Completed SBA Loan application
• Tax Information Authorization for the applicant, principals, and affiliates
• Complete copies of the most recent Federal Income Tax Return (including all schedules)
• If 2019 has not been filed, you will need a year end profit and loss statement and balance sheet.
• Schedule of Liabilities
• Personal Financial Statement
• Current Year-to-Date Profit and Loss statement

What else you need to know about Economic Injury Disaster Loans (EIDLs)

• These loans are only intended as working capital loans utilized to assist with impact caused by the coronavirus emergency efforts. The EIDL’s are not for other purposes such as expansion, new equipment, property purchases, etc. that do not have anything to do with the national emergency we are facing.
• Interest rates will likely be 3.75% for businesses and 2.75% for non-profits.
• Loan applications will be evaluated by SBA loan officers. Criteria includes:
• Credit history acceptable to the SBA
• Repayment abilities
• Eligibility – businesses in a declared state/county, suffered working capital losses due to the declared disaster (not a general downturn in business due to the economy or other reasons.
• Paper application can be submitted but this will slow the process considerably

Documents you need to complete application

• Completed SBA Loan application
• Tax Information Authorization for the applicant, principals, and affiliates
• Complete copies of the most recent Federal Income Tax Return (including all schedules)
• If 2019 has not been filed, you will need a year end profit and loss statement and balance sheet.
• Schedule of Liabilities
• Personal Financial Statement
• Current Year-to-Date Profit and Loss statement

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