Generally, it can take anywhere between 20 minutes to just over an hour to complete. These loans are only available directly through the SBA - you can’t apply through a bank or other lender. You can apply for an Economic Injury Disaster Loan by filling out a short application on the SBA disaster loan website.
And after another two weeks, it will be available to all eligible nonprofits and small businesses. This time it’s only $5,000 - and will roll out to businesses and nonprofits that saw a 50% decrease in revenue with no more than 10 employees.Īfter two weeks, it will become available to all businesses or nonprofits with 10 employees or fewer. The America Rescue Plan Act also relaunched the EIDL targeted grant. Terms can stretch as long as 30 years, depending on your organization’s ability to repay. The interest rate for the EIDL is 2.75% for nonprofits. The EIDL program originally offered loans up to $2 million based on your operating expenses - but that has since been lowered to just $150,000. Nonprofits can qualify for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loans. Which SBA loans can nonprofits qualify for? And you’ll be competing with thousands of businesses for a limited amount of funds. But there are still restrictions on who can qualify. Please be careful to provide your Account Number and Routing Number accurately, as this is the information that will be used to fund your loan if it is approved! If you are not sure of either number, we recommend contacting your bank or logging into your online banking account, which will typically list these numbers in the Information & Documents or similar section.The Coronavirus Aid, Relief and Economic Security (CARES) Act opened up eligibility for SBA loans to more businesses, including nonprofits. In this section, you will be prompted to provide the funding account information. This step is completely optional please use it if you find it helpful or skip it if you would prefer to provide the required statements manually. Simply follow the steps within the pop-up modal to find your banking institution and link your account information. Please note, these documents are required by the SBA before your loan can be funded. When you elect to upload documents, you will be able to upload each document as outlined in the document checklist. If you do not wish to upload documents at this stage, select Continue to advance to the next section of the application. Prior to submitting your application, you have the option to upload required supporting documentation. Once you have added all business owners, you will see a summary of the ownership information that has been provided. Please enter your business information here as it appears on your affiliate business’ tax records and answer the few simple questions about the capital requirements of that business. If you indicate Yes to having affiliates, the next screen will be the Affiliate Information section. To learn more about the SBA’s affiliation rules, please click here. You will be able to input the affiliate business’ information and answer simple questions about the capital requirements of that business on the next screen. If any guarantors (i.e., owners of 20% or more of the applicant business) hold 50% or more ownership of any other business, please select Yes to the affiliates question. Examples of available liquidity that may impact eligibility includes high personal net worth, easy access to traditional bank financing, or large cash balances on the business’ balance sheet.
If you do not have access to liquidity elsewhere, simply select Yes – Liquidity is Unavailable to move forward. You will be able to attach the management agreement, if applicable, in the document upload section at the end of the application.īe sure to completely read each question and answer to the best of your ability, as incorrect answers could affect your eligibility.Įligibility Check-in: For SBA loan eligibility, we are required to confirm that your business does not have sufficient cash on hand or other liquidity to finance the loan request. (This is uncommon) Any Applicant owned in part, or in whole, by an ESOP or 401(k) plan must also provide to the Lender evidence that the Applicant, ESOP or the 401(k) plan is in compliance with all applicable IRS, Treasury, and Department of Labor requirements and it will comply with all relevant operating and reporting requirements. The SBA requires 100% of ownership to be disclosed, so you will need to enter information for each owner in this section. Please provide ownership information for each owner of the business.