Small Business Administration Disaster Relief
Posted: March 31, 2020 in Achieving Financial Goals
Indiana businesses affected by disaster declarations by federal and state government are now eligible for U.S. Small Business Administration Disaster Loans (SBA). Below is a chart summarizing the outlined loan programs. Interested business owners and operators should apply directly to the SBA.
SBA Disaster Loan Programs
| $25,000 or less | $25,001 - $2 Million | |
|---|---|---|
| Term | Up to 30 years | Up to 30 years |
| For Profit Rate | 3.75% | 3.75% |
| Non-Profit Rate | 2.75% | 2.75% |
| Collateral | No | Yes (No matter the equity) |
| 1st Payment Date | 1 year from note date | 1 year from note date |
The entire state of Indiana is a declared disaster area meaning any business located in Indiana is eligible to apply. The SBA Disaster Loan Program provides economic support to small businesses to help overcome the temporary loss of revenue. Loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact. If the loan is funded and additional funds are required, shortly thereafter the business can apply for an increase in the disaster loan. Turnaround time is 3 weeks or more, subject to SBA application volume. Businesses interested can apply directly to the SBA here.
You can view The Small Business Owner's Guide to the CARES Act here.
While ProFed and other commercial lenders are not parties to SBA disaster loans, we are pleased to discuss these and other prospects with ProFed’s member business borrowers and depositors.
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