SBA

SBA Economic Injury Disaster Loan Guide

Updated 2:18 pm, 3/20/2020

Ohio has been qualified for the Economic Injury Disaster Loan program because of the coronavirus. Ohio small business owners, small agricultural coops, and private nonprofits can now apply for these loans up to $2.5 million, up to 30 years.

1. General Overview

Economic Injury Disaster Loans are exactly that – loans, not grants. They will require repayment (basic terms can be found here). These 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. Loan rates are expected to be 3.75% for businesses and 2.75% for non-profits with long-term repayments in order to keep payments affordable. Terms will be determined on a case by case basis. Here are other things you need to know:

  • These loans are only intended as working capital loans utilized to assist with impact caused by the coronavirus emergency efforts. The EIDL’s are not for other purposes such as expansion, new equipment, property purchases, etc. that do not have anything to do with the national emergency we are facing.
  • Interest rates will likely be 3.75% for businesses and 2.75% for non-profits.
  • Loan applications will be evaluated by SBA loan officers. Criteria include:
    • Credit history acceptable to the SBA
    • Repayment abilities
    • Eligibility – businesses in a declared state/county, suffered working capital losses due to the declared disaster (not a general downturn in business due to the economy or other reasons.)

2. Process Overview

To get an overview of the three-step process, you can go here – Overview).

Note – we recommend filing electronically, but are providing links to the forms so that you can get your information ready to go. You can file with paper, but we expect that will take longer.

3. Required Documents

For Businesses – documents you need to complete an application:

  • Business Loan Application (SBA Form 5) completed and signed by business applicant.
  • Request for Transcript of Tax Return (IRS Form 4506-T) completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
  • Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
  • Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
  • Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).

For Businesses – additional documents you may need to submit

  • Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  • If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year is acceptable.
  • A current year-to-date profit and loss statement.
  • Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.

SBA seeking Emerging Leaders for training program

emerging leadersThe U.S. Small Business Administration is seeking 15 applicants for its Emerging Leaders Initiative to be held in Tiffin later this year. This is the first time the program, a seven month course for entrepreneurs looking to take their business to the next level, is being offered in a community of this size.

The training program is provided at no cost to the participants, and the StreetWise Steps™ to Small Business Growth curriculum gives small business owners an opportunity to gain knowledge and experience through a combination of executive education, practical tips based on real-life business experience, and advice from business leaders that can be readily applied.

From the SBA:

Emerging Leaders Initiative provides free entrepreneurship education and training for executives of small, poised-for-growth companies that are potential job creators.  This intensive executive entrepreneurship series includes nearly 100 hours of classroom time. It also provides opportunities for small business owners to work with experienced coaches and mentors, attend workshops, and develop connections with their peers, local leaders, and the financial community.

Participants are given the opportunity to work with experienced mentors, attend specialized workshops and develop connections with their peers, city leaders, and the financial community. The Initiative incorporates a curriculum that is research-based and nationally scalable, enabling participating businesses to engage in focused development and expansion strategies, including options for accessing new capital and securing government contracts.

Since its inception in 2008, the SBA’s Emerging Leaders Initiative has trained over 5,000 small business owners, creating over 6,500 jobs, generating over $300 million in new financing, and securing over $3.16 billion in government contracts.

Given the success of SBA’s Emerging Leaders, the SBA has expanded the initiative to include 60 locations to help growing entrepreneurs in emerging markets.

Interested candidates can apply here, or contact Tom Sangrik at (216) 522-4198 or thomas.sangrik@sba.gov.

Additional information about the program can also be found in this FAQ.

National Small Business Week – how to get involved

small business week

Yesterday was the beginning of National Small Business Week 2017, running from April 30 – May 6! Started in 1963 and sponsored by the U.S. Small Business Administration, Small Business Week recognizes the critical contributions of America’s entrepreneurs and small business owners.

The SBA is offering the following webinars throughout the week:

The U.S. Economic Outlook and Its Impact on Small Businesses
Presented by Visa
May 2, 2017 | 2:00-3:00 pm ET
Register here

5 Fabulous Habits of Local Business Champions
Presented by YP
May 3, 2017 | 2:00-3:00 pm ET
Register here

Grow Your Business Online
Presented by Google
May 3, 2017
4:00-5:00 pm ET
Register here

The Future of Small Business Innovation
Presented by Salesforce
May 4, 2017
2:30-3:30 pm ET
Register here

How to Write Your Email Content in 15 Minutes or Less
Presented by Constant Contact
May 4, 2017 | 3:30-4:30 pm ET
Register here

Find the Hidden Money in America
Presented by Chase
May 4, 2017 | 5:00-6:00 pm ET
Register here

For more information about the SBA click here. For more information about National Small Business Week, click here.

“Mission Main Street” provides affordable downtown finance

anchor logoLooking for financing for your small, downtown business? Anchor Financial Services provides a  “Mission Main Street” lending initiative,which aims to provide downtown businesses with long-term, cost-effective financing to help support and stimulate growth.

For-profit businesses operating in one of Anchor’s targeted communities are eligible for $15,000-$250,000 loans with competitive interest rates, for up to 10 years with no penalty for early pay-off. The proceeds of the loan can be used for any business purpose including working capital, inventory, hiring, purchasing furniture and fixtures, renovations, leasehold improvements, and machinery and equipment purchases.

With these affordable small business loans, Anchor hopes to increase and reassert the historic and economic value of downtowns across America, and preserve businesses that convey a community’s identity, heritage and personality.

You can find more information about Anchor and their other loan programs here. For more information about the Mission Main Street program, contact Lisa Wagner at 419.873.8322.

About Anchor

Anchor is a non-profit, U.S. Treasury, and SBA-certified economic development agency whose mission is to support America’s communities through creative lending initiatives within underserved communities. We provide viable small businesses with long-term, cost-effective financing strategies designed to stimulate economic expansion, promote sustainable job growth, and achieve the American Dream. By bridging the government gap, we are building diverse vibrant communities where access to capital is within reach for those committed to entrepreneurship, ideas, and hard work.

Small Business Administration forums offer new opportunities

SBAThe Small Business Administration (SBA) is hosting a seminar titled, “How to Sell Your Products or Services to the Federal Government” at the SBA Cleveland District Office this Friday, March 11, 2016 from 10 am to 12 pm.

The SBA works to create an environment for maximum participation by small, disadvantaged, & woman-owned businesses in federal government, either as prime contractors or subcontractors. This seminar will include a Business Development Program, SAM, HUBZone Program and SUB-Net. Seating is limited, so please register.

There will also be a “Small Business Forum Focused on Veteran-Owned Businesses” held Wednesday, March 31 from 8:30 am to 12:00 pm at the University of Toledo Brady Center, at the College of Engineering. The event will include remarks by Congresswoman Marcy Kaptur, the University of Toledo and SBA officials.

Participants will have the opportunity to network with other successful veteran business owners, financial assistance, training, counseling, government contracting opportunities, leaders and resource partners. The event is free, but registration is required.

If you have any questions, contact John Renner at 216-522-4167.

Hannah Taulbee – Heidelberg Student and SIEDC Intern