SBA Economic Injury Disaster Loans (EIDL)

EIDL provides low-interest loans to eligible small businesses that have suffered substantial economic injury, regardless of physical damage. It provides operating expenses until a business recovers.

Here is the Code of Federal Regulations rule on Economic Disaster Injury Loans (emphasis added):

(5) SBA makes an economic injury declaration in reliance on a state certification that at least 5 small business concerns in a disaster area have suffered substantial economic injury as a result of the disaster and are in need of financial assistance not otherwise available on reasonable terms. The state certification must be signed by the Governor, must specify the county or counties or other political subdivisions in which the disaster occurred, and must be delivered (with supporting documentation) to the servicing SBA Disaster Area Office within 120 days of the disaster occurrence. The Administrator may, in a case of undue hardship, accept such request after 120 days have expired.

Local jurisdictions must submit economic injury reports on the SBA ESTIMATED DISASTER ECONOMIC INJURY FOR BUSINESS (Word) to the state within 90 days of the event to allow time for processing.

To be eligible for an Economic Injury Disaster Loan (EIDL) Program (Inability of a business to meet its obligations as they mature and to pay its ordinary and necessary expenses) you will need At least 5 small businesses that need financial assistance not otherwise available on reasonable terms because of the disaster to complete the EIDL Form.

PLEASE NOTE: A single business destroyed in a fire or other disaster can affect the ability of many other businesses to pay their bills. For example, a building across the street from a hotel burns down, but the hotel is otherwise undamaged. However, the hotel loses business during the fire, cleanup, and rebuilding process, thus losing its ability to pay its bills – an economic injury. To get an SBA EIDL loan program for the county, all you need to do is to get five businesses to record the estimated/real economic injury on the SBA ESTIMATED DISASTER ECONOMIC INJURY WORKSHEET FOR BUSINESS (assuming they meet the criteria of not being able to get financial assistance on reasonable terms elsewhere) and send it to EMD. Again, please note – the people filling out the forms showing the economic injury are not obligated to apply for a loan. Getting the five businesses to show an economic injury simply allows the Governor to make a request for an EIDL program that any business that was affected by this loss can apply for. If you are uncertain what to do, please call for assistance.

Contact:

For more information please contact Toney Raines, Human Services Manager, at 253-512-7028.