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COVID-19 AND SBA Economic Injury Disaster Loans

COVID-19 AND SBA Economic Injury Disaster Loans

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Mar 27, 2020
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SBA Economic Injury Disaster Loan Seminars Presented by SBA Representatives through April 3, 2020

The Small Business Administration (SBA) recently launched its Economic Injury Disaster Loan (EIDL) program aimed to provide relief to small businesses suffering negative economic impact as a result of the COVID-19 outbreak. This loan program is in addition to the proposed expansion and relaxation of other existing SBA loan programs under the Coronavirus Aid, Relief, and Economic Security, or “CARES Act,” which is currently before Congress.

The EIDL loans are direct loans from the federal government, as opposed to a program where the SBA guarantees loans made through partner banks. They are available to eligible for-profit small businesses and certain nonprofit businesses and organizations.

Eligible businesses may qualify for loans up to $2 million with interest at 3.75% for for-profit businesses and 2.75% for nonprofits. The term of the loan may be up to 30 years.

The EIDL loans may be used to pay fixed debt, payroll, accounts payable and other bills and expenses that cannot be paid as a result of the COVID-19 outbreak “disaster.”

Some of the criteria for eligibility include: credit history, evidence of losses, repayment wherewithal, among others. There is no cost to apply or obligation to take the loan, if approved. There are no pre-payment penalties.

The SBA is running seminars through April 3, 2020 at 12 noon daily explaining:

  1. What businesses are eligible to apply for an SBA EIDL loan;
  2. The criteria for loan approval;
  3. How much can be borrowed and how loan proceeds can be used;
  4. Collateral requirements;
  5. The application forms and process; and
  6. What information and documents you should gather prior to applying.

Log-In Information is:
https://score.zoom.us/j/723846010

We have attended the virtual seminar and strongly urge all of our clients, contacts and colleagues to attend. The information is provided in a readily accessible format. There is also an opportunity for participants to pose questions directly to SBA representatives during the Question and Answer portion of the seminar.

The clear message from the SBA is if you believe your business is eligible, APPLY. All small businesses suffering economic damage as a result of the COVID-19 outbreak should cast the broadest net possible in their search for financial resources to get them through this unprecedented time.

We have the forms for the SBA EIDL loans and can support you in your efforts to apply for a loan. We are ready and available to provide advice and guidance on the economic relief opportunity available through the SBA EIDL program.

If you would like more guidance, please contact your Brown Moskowitz & Kallen, P.C. attorney at (973) 376-0909 via the office extensions below or the mobile telephone numbers provided.

Stuart Brown
Office Extension: 1118
Mobile: (908) 770-0166

Kenneth Moskowitz
Office Extension: 1112
Mobile: (908) 770-0160

Norman Kallen
Office Extension: 1114
Mobile: (908) 770-0165

Steven Rowland
Office Extension: 1124
Mobile: (973) 879-0544

Keith Marlowe
Office Extension: 1120
Mobile: (973) 568-7559

Richard West
Office Extension: 1126
Mobile: (973) 229-7928

Fredric Tudor
Office Extension: 1122
Mobile: (973) 476-8139

Kristina Brown
Office Extension: 1116
Mobile: (908) 239-7625

Michele-Lee Shapiro
Office Extension: 1130
Mobile: (201) 221-6814

Emilio Lamanna
Office Extension: 1129
Mobile: (516) 554-2460

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