SBA Disaster Loans are open! We have been told the best way to apply is online. Please know when you get into the application you have to select "state and county" then choose the disaster you are applying under. There are 3 COVID-19 options under Delaware County. (See photo.) There is no tangible difference to any of them. The application speaks to physical losses (real estate, equipment), not pandemic. I suggest answering every question, and know there is a narrative section to document the problems your business faces as a result of this crisis. It also talks as if the event is over, so consider the ongoing, continuation of the virus and how that will affect your business when responding/describing the loss of revenue. Technical questions can be directed to the SBA regional office in King of Prussia (610) 382-3062, there are additional resources listed below.
Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster. Current terms are 3.75%, for a maximum of 30 years, and up to $2M. (2.75% for private non-profits). There are rumors of interest rate drop, potential 5 months forbearance of p&i, and others - but they are just rumors at this point.
Application process to approval and closing can take 5 to 8 weeks, so I suggest getting your application in as soon as possible. Areas of Pennsylvania, Delaware, Maryland, and New Jersey were all approved this week. So it is expected there will be a substantial amount of applications pouring in, especially after the entire PA state was approved on March 19.
We will post updates as we receive them to help make this process easiest for members.
Please see other business guidance and programs at www.delcopa.org/covid-19.php
NOTE: This is a federal program. Small business can apply for both state loan programs and the federal programs, however, they cannot use the loan proceeds for the same “loss.” For example, if someone applies for the federal economic injury disaster loan to help cover rent for the next 6 months, they cannot then apply for PIDA and say it’s for rent.