In these extraordinary times, the team at Lippes Mathias Wexler Friedman strives to keep all of our clients updated on the ever-shifting business landscape. One potential opportunity for businesses impacted by the COVID-19 pandemic is the SBA’s Economic Injury Disaster Loan.

Which businesses will qualify?    All counties for which a declaration of emergency has been issued, which includes all of New York State (visit here for the updated listing as they are changing by the hour: https://disasterloan.sba.gov/ela/Declarations).  In these designated areas, small businesses (see https://www.sba.gov/size-standards/ for size standards) and nonprofits of any size that have suffered economic injury from COVID-19 and that the SBA is reasonably assured will be able to repay loans from personal or business cash flow.         

Which businesses are excluded?     Businesses primarily engaged in lending, speculation or investment, gambling activities, loan packaging, religious teaching, political or lobbying activities.  A business may also be disqualified if a principal is incarcerated, convicted of certain felonies, delinquent on child support payments, etc.
           
What is being offered?  Loan up to $2,000,000 with 3.75% interest (2.75% for nonprofits) with flexile long-term repayment plans of up to 30 years.

What now?  If your business is feeling the financial impact of COVID-19 then you should take the following steps: