Learn about the Small Business Administration Economic Injury Disaster Loan
The Small Business Administration (SBA) has added the State of Wisconsin as an Eligible Disaster Area. This provides the opportunity for small businesses to apply for an SBA Disaster Loan during this time of economic injury. Find more information about whether you qualify for the loan and what types of terms are available as well as how KMA can assist you in securing these funds.
SBA’s Economic Injury Disaster Loan
- These loans are available for small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations
- Some businesses that are NOT eligible are: agricultural enterprises, religious organizations, charitable organizations, casinos, racetracks, and real estate developers
- The businesses can qualify for loans up to $2 million with interest rates at 3.75% (2.75% for nonprofit organizations) with terms up to 30 years.
- The funds are to be used for working capital and not to refinance existing debt
- The SBA loan officer will determine the approved amount and loan terms upon approval of the application
- Any loans over $25,000 will require collateral
- SBA takes real estate as collateral when available
- They will not decline a loan for a lack of collateral but will require borrowers to pledge what is available
- There is no cost to apply, no obligation to take the loan if approved, and no prepayment penalty
- There is personal guarantee regardless of the amount of the loan
- The borrower has the opportunity to defer payments for up to 12 months
- Interest will accrue at the beginning of the loan
- Processing time typically takes 3-4 weeks from accepted application to money in the bank
- The typical decision time is 21 days
- When the decision is made on the amount and terms, paperwork is sent to you for signature
- When the signed paperwork is received the funds are directly deposited into your checking account typically within 2-3 business days
- If you are interested in applying, we recommend to complete the applications as soon as possible. The 3-4 week turn around will likely extend in response to the size of the pipeline. You can determine at the time of approval if you’d like to accept the loan.
The cost for KMA to aid with the application process will be at a discounted rate of $175/hour. Please reach out to Charissa Schulte, KMA Accounting Manager, directly to get the process started at email@example.com.