How to Get an SBA Disaster Loan (EIDL)

Disaster can strike at any time. If you are facing a problem with your business as a result of a natural disaster, an SBA disaster loan can help you get past it and get your business on the ideal path again.

What is an SBA Disaster Loan?

The government is well aware that business owners everywhere face all sorts of hurdles. This includes natural disasters. A single natural disaster like a tornado or an earthquake can easily have a terrible impact on your company’s operations.

That is why you might want to turn to what is known as an SBA disaster loan or an economic injury disaster loan. These loans are specifically designed to help any small business owner cope with an unexpected natural disaster.

Are You Eligible?

One of the first things you know is if you are eligible. As the experts at Lantern by SoFi point out, “EIDL program provides economic relief to small businesses that have suffered a loss in revenue because of the coronavirus pandemic.” That means that you are likely to be eligible for this kind of loan if you have been impacted by COVID-19. You can apply if you meet certain other criteria. That includes having five hundred or fewer employees. It also includes if you are part of a private nonprofit and operate in certain industries. It’s best to contact the government if you have any additional questions about this matter.

Required Documentation

In order to qualify for this kind of loan, you will have to prove a few things. Keep in mind that EIDL grant forgiveness may be possible. The first thing you’ll need to get done is prove that you were in business by January 31st, 2020. You will also have to provide a great deal of extensive documentation. The government wants to see your tax returns and other documents going back at least three years. You will also have to indicate how much money you require. The great thing about this program is you can borrow as much as half a million dollars. Interest rates on the funds vary depending on factors such as where you are a small business or a nonprofit. However, they are generally under four percent.

Seeing in Through

You can apply for this kind of loan online. Keep in mind the process may take some time. Loan administrators will need to sort through your paperwork. There have been many applicants for these loans so it may take some time to get them in place. You will be notified in writing if you qualify. You’ll also be notified of the amount of the loan and how you can pay it back. You can pay for the loan online. That makes it easy to stick to the repayment plan and get the help that your small business needs right now.

For many business owners, it’s nice knowing they have many options when it comes to funding their essential business expenses.