Attention Business Owners: Disaster Assistance is Available!
March 20, 2020
It has been a challenging time for most small business operators. The mandatory closures have had a devastating impact on hospitality operators, landlords, parking lot operators and retail establishments.
The Small Business Administration has issued News Releases for Maryland, Virginia and the District of Columbia allowing for disaster assistance in the form of Economic Injury Disaster Loans (EIDL).
An EIDL is primarily for working capital where a business cannot meet its obligations to pay ordinary and necessary operating expenses. The amount is up to $2,000,000.00. Loans will be based on what an applicant needs to survive until normal operations resume. An applicant must show that it could have met the ordinary and necessary operating expenses but for this disaster. The loan is not interest free. The interest rate is 3.75% for small businesses and 2.75% for private non-profit organizations. The loan term can be up to 30 years, but the SBA will determine the term on a case by case basis.
There are numerous threshold issues that must be satisfied before an application is submitted:
- Is the applicant considered a small business under SBA guidelines?
- Does the applicant have credit available elsewhere?
- Is the applicant eligible under FEMA?
- Is the applicant eligible for some version of business interruption insurance?
- Is the applicant in a disaster area?
Shulman Rogers is ready to assist businesses through these troubled times. If you would like more information on whether an SBA EIDL is right for your business and whether you would qualify, contact the Shulman Rogers attorney with whom you regularly work, or please feel free to contact us with any questions.