While Seedcopa + SeedcoDE are not able to assist you directly with the SBA’s Economic Injury Disaster Loans, we are committed to being the best facilitator we can be. Below are some FAQs that summarize what we know as of March 19, 2020.
What is the basic structure of the SBA Economic Injury Disaster Loan
- -The interest rate is fixed at 3.75% for for-profits and 2.75% for 501c3 non-profits
- -The repayment term can be as long as 30 years
- -Loans up to $2 Million
- -Collateral is required for loans greater than $25,000
- -Loans are processed and funded directly by SBA, via the SBA Disaster Assistance link below
What can the loan proceeds be used for?
The loan can be used to meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company’s financial needs.
What types of businesses are eligible?
Small, for-profit businesses and 501c3 non-profits.
Are Pennsylvania businesses eligible?
Yes, businesses in all counties of Pennsylvania became eligible to apply online on 03/18/2020. While one page of the SBA’s Disaster shows only a few counties as eligible, when you Apply Online (link below) it reflects that all counties are eligible.
Where do I apply?
The application is online at the following link. Be aware, unless you have had a prior SBA Disaster Loan, you will need to Register first, rather than Log in.
How long will the process take?
Please be aware that the SBA that the approval will take up to 21 days, with the loan application and disbursement period following the approval process. We expect the demand for this program to be unprecedented so we advise that you be prepared for delays.
Do you have any other thoughts or advice?
- -Contact your loan officer at your bank, credit unions or other lenders. FDIC has recently announced that it will allow banks to provide payment accommodations for those impacted by COVID19.
- -Visit our website frequently and follow the local and state emergency updates to stay on top of other programs that may become available.