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COVID-19 Guide

Economic Injury Disaster Loans (EIDL) from the SBA

Funds

disbursed

While loans may not be considered a helpful tool at this time, but we urge you to apply as soon as possible for these highly favorable loans

These loans have incredibly low interest rates
Payments are deferred for 1 year
Funds can be expected in as little as 30 days
As a part of the CARES act, all who apply are eligible for an advance up to $10,000, which is expected to be disbursed within a week of applying, does not need to be repaid, and you can keep regardless of whether you receive a loan
The USFWC will be furiously advocating for loan forgiveness, to turn these loans into grants. The developments on economic response are very fluid right now, and we expect the federal government to continue to reduce burdens on small businesses

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COVID-19 Guide

Economic Injury Disaster Loans (EIDL) from the SBA

Funds

disbursed

DOCUMENT YOUR STORY

Record any business loss, receipts, budget / projection documents in written or digital form

APPLY NOW

You may get denied, but you can appeal. In order to get funds ASAP you need to apply ASAP. This loan money will run out!

Will this loan work for worker co-ops?

YES! The third stimulus package that is expected to pass in the next few days includes an unprecedented exemption from the personal guarantee requirement, which will cover worker co-ops up to 500 workers for loans up to $200,000.

The Small Business Administration's (SBA) disaster loans are the primary form of Federal assistance for the repair and rebuilding of non-farm, private sector disaster losses. �https://www.sba.gov/disaster-assistance/coronavirus-covid-19

https://covid19relief.sba.gov/

Here’s the two most important things to know:

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Funds

disbursed

Verification/

Loan processing

Apply for loan

Gather

documentation

COVID-19 Guide

Economic Injury Disaster Loans (EIDL) from the SBA

The basic filing requirements include:

Electronic Loan Application (Form 5)
Tax Authorization (Form 4506-T) 20% Owners
Most recent Business Tax Return, ideally 3 years
Personal Financial Statement (Form 413) 20% Owners, ideally 3 years
Schedule of Liabilities (Form 2202)
Articles, bylaws, certificate of business good standing
At least 4 months, ideally 9 months of revenue projections

https://disasterloan.sba.gov/apply-for-disaster-loan/index.html �Additional filing may be required)

DOCUMENT YOUR STORY

Any business loss, receipts, budget / projection documents

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Funds

disbursed

COVID-19 Guide

Economic Injury Disaster Loans (EIDL) from the SBA

Loan Terms (case by case basis)

$25,000 or less - no collateral required

$25,000 or more - must be collateralized ((Personal residence, business assets) but a loan application may not be declined for a lack of available collateral

1 year of deferment, first payment not due until 1 year from now. Up to 30 year repayment,

no pre-payment penalty

Processing time (~30-45 days)

18-21 days for approval
2-3 days for document review
Funding happens within 2-3 business days

Interest rate

Businesses and Small Agricultural Cooperatives without Credit Available Elsewhere - 3.75%

Non-Profit Organizations without Credit Available Elsewhere - 2.75%

Interest DOES accrue during the first year

IMPORTANT

Make sure you application is complete and accurate.

Errors will delay your application by days or weeks

Biggest determinants

Credit History
Repayment ability �(health of your business prior to the crisis)

Call for Assistance 1-800-659-2955 | 7am-9pm ET | Spanish support is available

You can also call your local SBDC for assistance. Find your local SBDC here.

You can also contact the USFWC at info@usworker.coop

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COVID-19 Guide

Economic Injury Disaster Loans (EIDL) from the SBA

Frequently Asked Questions

Our FAQ has moved!

You can view our frequently asked questions and their answers here.

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