SBA Economic Injury Disaster Loan Program

OVERVIEW: The Small Business Administration (SBA) Economic Injury Loans program provides funding for small businesses, small agricultural cooperatives and certain private, non-profit organizations that have suffered “substantial economic injury” in a declared disaster area. Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses. Funds can be used to meet necessary financial obligations that a business or private, non-profit organization could have met had the disaster not occurred. It provides relief from economic injury caused directly by the disaster and permits the organization to maintain a reasonable working capital position during the period affected by the disaster. The SBA provides assistance only to organizations that the SBA determines are unable to obtain credit elsewhere. The SBA can provide up to $2.0 million in disaster assistance to a business. This loan cap includes both economic injury and physical damage assistance (actual loan amount is based on economic injury and financial needs). The interest rate cannot exceed 4% per year and cannot exceed 30 years.

TIMETABLE: Applications can only be filed following an official disaster declaration, these include a presidential disaster declaration, a gubernatorial disaster declaration, a special SBA administrator declaration, or a secretarial (agriculture or commerce) disaster declaration. Applications must be postmarked within 9 months of such a declaration.

APPLICATION PROCESS: Homeowner, renters, businesses, and others can apply on line on the program’s page.

FOR MORE INFORMATION: See SBA’s Economic Injury Loans page.

TAGS: declared disaster, business, loans