The pandemic is a natural disaster and managing this has been quite a problem. Due to the lockdown, there is large-scale unemployment and many businesses had to close down. If you are looking to revive your small business, you can decide on applying for the small business disaster loan. You can call the Customer Service Center SBA Disaster Assistance and get the required detailed information on this loan.
Before applying for this disaster loan, it is advisable to get some information on this.
SBA Disaster loans:
Two types of SBA disaster loans that you can apply for.
- Economic Injury Disaster Loan for Emergency Advance:
Owners of small businesses can apply for an advance in loans up to $10,000, for all the loss of revenue due to the COVID-19 pandemic. You do not need to repay this advance.
- Program Loans for Paycheck Protection:
These loans are specifically designed to help different companies to retain their workers. These loans can be forgiven if they are used for mortgages, rent, payroll, or even utilities. The employees need to be kept on the payroll for a minimum of 24 weeks.
The Other Disaster Loans:
1.Economic Injury Disaster Loans:
You can get a loan for up to $2 million as working capital loans. These can be used for helping small businesses and nonprofits meet the financial obligations they would have been able to meet if not for a disaster. This can be applied for within a time span of nine months after the declaration of the disaster.
- Business Physical Disaster loans:
A loan for up to $2 million for repairing or even replacing property that has been damaged in a disaster. This includes inventory, real estate, equipment, and machinery. These loans are for businesses of any size. You need to apply within 60 days after the disaster has been declared.
- Military Reservists Economic Injury Loans (MREIDL):
These loans are for helping businesses for covering operating expenses at the time of a shortfall due to an essential employee called on active duty.
- Home and Personal Property loans:
Homeowners can apply for loans up to $200,000 to repair or even replace a primary home to the condition this was pre-disaster. Renters and homeowners are eligible for a loan of up to $40,000 to replace or repair personal property, like furniture and clothing.
How to qualify for SBA Loans:
Self-employed workers and small businesses are eligible for the PPP (paycheck protection program). For getting this disaster loan, the government has to declare a disaster in a region. Only then can the residents apply for the different types of federal assistance available.
For qualifying, your business needs to be located in an area that is declared a disaster. Your business also needs to have employees less than 500 in number and be taken as a small business under the standards of the SBA.
Each disaster is different and the rate offered is in accordance with the type of disaster.
