SBA Economic Injury Disaster Loans With Cash Advance Grants
Business owners can now apply for an up to $10,000 cash advance grant through the Small Business Administration’s Economic Injury Disaster Loan program. The $10,000 grant is a cash advance of the funds that an applicant would receive through the EIDL program. For more information about the advance grants please this page.
The U.S. Small Business Administration (SBA) has approved Wisconsin’s request for small businesses affected by the COVID-19 pandemic to access low-interest federal disaster loans. SBA’s EIDL are available to small businesses, small agricultural cooperatives, small agricultural businesses and most private non-profit organizations. The interest rate on the loans is 3.75% for for-profit businesses and 2.75% for nonprofits. Participants may be able to extend payments for up to 30 years. The SBA is currently offering a deferment of payments for 12 months once the loan has been issued.
The EIDL Program provides working capital loans for Fixed Debts, Payroll, Accounts Payable, and Other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profit or for expansion. The SBA primarily looks at the credit history and the ability to repay the loan as criteria for loan approval. Loans under $25,000 do not require collateral.
Applying to the EIDL offers very little risk to businesses. There is no application fee to apply and if you are awarded a loan you are under no obligation to accept the loan if you have found better financing elsewhere. If your business needs funds to offset working capital costs you should apply to the program ASAP, you can amend the amount of funds requested if your needs since the time of the application submission. If you have more questions, please view this FAQ page on the EIDL program.
Please CLICK HERE to access the application portal.
The Wisconsin Small Business Development Network (SBDC),a resource partner of the SBA, is available to help small businesses apply for federal disaster loans to mitigate the substantial economic injury as a result of the COVID-19 pandemic. Please visit the Wisconsin SBDC website designed to help business owners understand the qualifications and application process. Consultants across the network’s 13 locations are working remotely via phone, email and virtual tools to assist clients.
SBA Express Bridge Loan Pilot Program
This pilot program allows SBA Express Lenders authority to deliver expedited SBA-guaranteed financing on an emergency basis for disaster-related purposes to eligible small businesses, while the small businesses apply for and await long-term financing. For more information please visit the Express Bridge Loan Website.
For more information on programs offered through WEDC please CLICK HERE.