Disaster Relief Loans
The U.S. Small Business Administration (SBA) is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). These states include, but are not limited to Florida and Colorado, as well as Washington D.C.
These loans assist small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19). This will apply to current and future disaster assistance declarations related to Coronavirus.
SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. 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. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
Loans up to $25,000 generally will be unsecured. For loans above $25,000, the loans may requires come collateral.
If the company or the principals owning 20% or more in the affected company have any existing tax liens or past due student loans (or other federal debt) these have to be resolved in order to be approved.
The typical time frame for approval ranges from 17-21 days, but can take longer.
For more information on the SBA Economic Injury Disaster Loan program please visit the following websites:
- FL 16353 - SBA Offers Disaster Assistance to Florida Small Businesses Economically Impacted by the Coronavirus (COVID-19)
- Disaster Loan Assistance
You can apply for both the SBA Economic Injury Disaster Loan program and the State of Florida Bridge Program.
The State of Florida Bridge Program provides loan of up to $50,000. The terms are 1 year and are interest free for 1 year. The interest rate will be 12% for the unpaid balance thereafter until the loan is paid off.
For more information on the Florida Bridge Loan please visit the following websites:
Our Firm is providing assistance to clients needing help in completing the application process, gather supporting documentation, reviewing documentation and walking the client through the terms and conditions of these loans.
Our contingency fee billing program, provides customers the piece of mind that they do not have to pay of any upfront legal fees, and we only are paid if the loan is approved and closed.
We also allow for payments of all of our fees to be maid via credit card, we accept all major credit card brands.
If you would like to obtain more information regarding the above or require legal assistance regarding the above loan programs, please contact us for more information.