As of March 21st, All 67 Counties in Alabama Are Now Eligible to Apply for the SBA Economic Injury Disaster Loan Program

Effective immediately, Alabama counties can apply for the SBA's EIDL Program - https://disasterloan.sba.gov/ela/Declarations/Index.

These loans will provide working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19):

• Loans up to $2,000,000
• 3.75% fixed interest rate on loans to for-profit companies
• 2.75% fixed interest rate on loans to non-profits
• Up to 30-year term and amortization (determined on case-by-case basis)
• Financing to be used for fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.

Note: The EIDL is not an appropriate source of emergency funding.  Given the tremendous volume of applications, we have heard that the processing time may be delayed.  This is why it is critically important for you to submit complete and accurate information on your first application.  You do not want to give the agency a reason to reject your application. 

WHAT TO DO NOW:
First, it’s important to understand that while Economic Injury Disaster Loans can be a lifeline, they will take time to acquire and not all businesses will qualify. Alabama SBDC recommends that you take action now to preserve cash and protect assets. You should be in contact with your lending institutions to see what programs your bank/credit unions are offering during this time (delaying payment requirements/interest only payments) and vendor payments on account. Do the hard stuff first.

Plan to stay in business.  Resources for making that list of steps to take: http://asbdc.org/disaster-assistance-business-continuity/

Next, does your business meet SBA small business requirement size standards for this assistance? The size standards are by NAICS Code Classifications .  The SBA Size Standards  are very clear as to how a Small Business is defined.   

Now, prepare the following documentation, which will be required for application. Although the application is online, we recommend completing the paper form so that you can have the information filled out ahead of time. Forms are available here: https://disasterloan.sba.gov/ela/Information/PaperForms. 

• ·         SBA Loan Application (SBA Form 5) (SBA Form 5C) .
• Tax Information Authorization (IRS Form 4506-T) for each owner with minimum 20% ownership interest in the business.
• Federal personal AND business tax returns for the last 3 years, including all schedules (include personal tax returns for each owner with minimum 20% ownership interest in the business).
• Personal Financial Statement (SBA Form 413D) for all owners of the business with minimum 20% ownership interest.
• Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).
• A current year-to-date profit and loss statement and balance sheet.
• Monthly sales figures beginning 3 years prior to the disaster and continuing through the most recent month available. (SBA Form 1368). Total figures for each year should reconcile to the sales figures on corresponding tax returns.
• Written explanation of the amount you are seeking and how it will be used.  Describe the loss.
• Download All Forms in a ZIP file.

PREPARE TO APPLY: (Upcoming live webinars, On-Demand webinars, Presentation Slides)

On-Demand Webinar & Presentation Slides: The training webinar recorded on 20 March 2020 is now available on-demand and includes a PDF of the presentation slides.

The Alabama SBDC is preparing a series of live webinars for the week of March 23rd.  The next "Preparing to Apply for the SBA Economic Injury Disaster Loan" webinar will be on Monday 3/23 at 9AM.  Register online at https://bitly.com/EIDL-Webinar3 .  Additional dates/times are additional webinars scheduled for Tuesday 930am/230pm, Wednesday 10am/2pm, and Thursday 4pm.

In addition to covering the application process, we will also share what we've learned from SBA and other SBDC programs about turnaround time, and feedback on approved vs declined applications.

NOTE: This is a rapidly evolving topic; please check our website ASBDC.org and follow us on https://www.facebook.com/AlabamaSBDC to ensure you have the most current information!

Once you have viewed the instruction webinar, and completed the paper forms, you can begin the application process at https://disasterloan.sba.gov/ela/Account/Login. 

Remember all login instructions and passwords.  We cannot help with login issues.  For best results, we have heard that Microsoft Edge & Explorer work best.
If you need additional assistance, the Alabama SBDC can assist you at no charge.  As you might imagine, we are experiencing extremely high call volumes… and like many of you, are working from home. 

Please register online at  ASBDC.org/register.

We send our heartfelt support to our friends, families, coworkers, and beloved small business clients who make our communities so vibrant.

We are here to help, and we are in this together.  Stay safe, healthy, and Small Business On!

Regards,
Andrea Rogers Mosley
Director
Alabama SBDC at Alabama State University
334-229-4138 or 334-604-5723
arprice@alasu.edu