Delaware Small Businesses Affected by Coronavirus (Covid 19) Can Apply for SBA Economic Injury Disaster Loan

Delaware District Office  - March 2020

u s small business administration

Delaware Small Businesses Affected by Coronavirus (Covid 19) Can Apply for an SBA Economic Injury Disaster Loan

SBA logo

 

 

What are SBA Economic Injury Disaster Loans?

SBA Economic Injury Disaster Loans are working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery
period.

Details on SBA's Economic Injury Disaster Loan Program and information on how to apply for it are included below.

 

How to Apply for an SBA Economic Injury Disaster Loan:

Applicants may apply online, receive additional disaster assistance information and download applications at
https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email
disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may
call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement
Center, 14925 Kingsport Road, Fort Worth, TX 76155.

 

FACT SHEET – ECONOMIC INJURY DISASTER LOANS
DELAWARE Declaration 16342
(Disaster DE-00024)


Incident: CORONAVIRUS (COVID-19)
occurring: January 31, 2020 & continuing


All counties within the State of Delaware; the contiguous Maryland counties of: Caroline, Cecil, Dorchester, Kent,
Queen Anne’s, Wicomico, and Worcester; the contiguous New Jersey counties of: Gloucester and Salem; and the
contiguous Pennsylvania counties of: Chester and Delaware


Application Filing Deadline: December 17, 2020


Disaster Loan Assistance Available:
Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural cooperatives, small
businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial
obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery
period.


Credit Requirements:
• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay the loan.
• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available.
SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.


Interest Rates:
The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is
3.750 percent.


Loan Terms:
The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the
financial condition of each borrower, which in turn will determine the loan term.


Loan Amount Limit:
The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to
the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit.
SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major
source of employment, SBA has the authority to waive the $2,000,000 statutory limit.


Loan Eligibility Restrictions:
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers
who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.


Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this
declaration to determine how an approval of SBA disaster loan might affect their eligibility.


Refinancing:
Economic injury disaster loans cannot be used to refinance long term debts.


Insurance Requirements:
To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers
whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA
requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the
maximum insurance available.


Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email
disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may
call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement
Center, 14925 Kingsport Road, Fort Worth, TX 76155.