Dear Loveland Business Community,
We are happy to report that Colorado small businesses can now seek individual loans up to $2 Million dollars as part of the Small Business Administration’s Economic Injury Disaster Loan program. Businesses can begin to apply online at disasterloan.sba.gov. We encourage businesses seeking this particular relief program to apply as soon as they can.
- This is a loan program for businesses with 500 or fewer employees. Some business types ineligible (ie. Charitable, Gambling, Cannabis)
- 3.75% interest and no fees to apply
- Loans are meant for working capital only – not to pay off long term debt. Paying down lines of credit are ok with these funds.
- Loans can be up to $2 Million
- Unsecured loans up to $25K, loans above that amount require collateral which will take a bit longer to process.
- SBA predicts up to 3 weeks to be approved/denied and another 3 weeks to get funds. Incomplete applications will not be accepted and/or delayed.
- Businesses may re-apply for additional funding if they need more money while the program is open
- Funds cannot be used to pay off previous disaster loans
- Businesses will not qualify if they have low credit scores and/or if their personal or business statements reflect that credit may be available elsewhere. They are trying to encourage businesses to use alternative credit facilities first that are available to them.
The following are links to paper documents that businesses should begin assembling to get ready to apply (this can be done electronically through the SBA website):
- Form 5 – Application
- IRS 4506T for each business owner and affiliated businesses
- Personal Taxes – for all business owners and affiliates
- Schedule of Liabilities
- Income statements, cash flows, profit and loss and balance sheets – Quickbooks forms work
- SBA Form 413
- SBA Form 1368 –providing typical sales monthly figures vs drop in sales
In a rapidly changing environment our office will err on getting information to you quickly, even though it may not be perfect. We appreciate your patience and understanding as we try to support you the best way we know how.
Economic Development Director, City of Loveland