How Do I Apply for a Federal Disaster Loan (EIDL)?

by | Mar 17, 2020 | COVID Archives | 0 comments

Small businesses in Loudoun County are now eligible to apply for Federal Disaster Loans for economic damage. To begin the application process please use the link below:

https://covid19relief.sba.gov

 

UPDATE 3-30-20: The SBA has implemented a new, simplified application process for the EIDL (Economic Injury Disaster Loan). The new application process will ask you to fill in some information and then require you to upload required documents to complete the application. You will still need the same information about your business in order to complete the application… see below.)

 

Click Here for a video overview and walk through of of the streamlined online application see our FAQ on getting assistance below.

 

A few things to keep in mind about these emergency loans:

  • This is a business loan, not a grant, for businesses that are directly impacted by COVID-19.
  • The loan is from the SBA directly, it does not need to go through a bank.
  • You do NOT need to be rejected by a commercial bank before applying for an SBA EID Loan.
  • Please be patient as the SBA will be fielding many calls.
  • Review the entire application before submitting to make sure you’re not missing any information that might slow down the approval process.
  • If you are not able to process a loan online for some reason there is an option to file a paper application. Contact the Loudoun SBDC at mec20175@mec or (703) 466-0466 if that is your situation for assistance.

In order to be prepared for the application process you will want to gather documentation in advance. You will also need to have access to a scanner so you can download, sign and upload documents needed for the application.

Please also note the following as you navigate the loan application process online:

  • The SBA site is experiencing high volumes of traffic and the site might be slow. Try accessing during non-peak hours, 7pm-7am EDT.
  • Some users are experiencing issues using Chrome. Please use an alternate browser – like Edge or Internet Explorer.
  • As you go through the application process, SAVE early and often to ensure you don’t lose work.

 

The following is a list of some important documents you will need to have access to for the application process:

  • Contact information and social security numbers for all applicants.
  • Employer Identification Number (EIN) for business applicants.
  • Financial information (e.g. income, account balances and monthly expenses for the business).
  • Owner financial information (personal financial statements for owners of 20% or more).
  • Past 3 years of Federal Business Tax Returns (1 year minimum for newer businesses).
  • Past 3 years of Federal Personal Tax Returns for owners of 20% or more (1 year minimum).
  • Deed or lease information for any property (business and personal).
  • Business Insurance information.
  • Articles of Incorporation, Certificate of Good Standing, etc.

 

The following list of Federal forms will be required to apply:

  • Loan application (SBA Form 5), completed and signed (this is electronic/online in the portal). To see what the form looks like, an example can be found here.
  • Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant, each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  • Complete copies, including all schedules, of the most recently filed Federal income tax returns for the applicant business; an explanation if not available
  • Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, and each general partner or managing member
  • Schedule of Liabilities listing all fixed debts (SBA Form 2202may be used)

Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339.

If you have questions or need help preparing your application contact the Loudoun SBDC for assistance:

Call our office at (703) 466-0466 or email our staff at mec20175@gmu.edu

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