How do I get an Economic Disaster Injury Loan Advance for COVID-19?

Was your small business impacted by the Coronavirus? You can apply for this loan advance on the SBA.gov website. Additional details on what questions are asked on the form are covered below.

What is the process?

First, you will need to confirm eligibility. Then, you will need to fill out a three step form. All the information you will be asked is covered below.

Confirm eligibility

The applicant must be one of the following:

• A business with not more than 500 employees.
• An individual who operates under a sole proprietorship, with or without employees, or as an independent contractor.
• A cooperative with not more than 500 employees.
• An Employee Stock Ownership Plan (ESOP), as defined in 15 U.S.C. 632, with not more than 500 employees.
• A tribal small business concern, as described in 15 U.S.C. 657a(b)(2)(C), with not more than 500 employees.
• A business, including an agricultural cooperative, aquaculture enterprise, nursery, or producer cooperative, that is small under SBA Size Standards found at https://www.sba.gov/size-standards.
• A business with more than 500 employees that is small under SBA Size Standards found at https://www.sba.gov/size-standards.
• A private non-profit organization that is a non-governmental agency or entity that currently has an effective ruling letter from the IRS granting tax exemption under sections 501(c),(d), or (e) of the Internal Revenue Code of 1954, or satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law, or a faith-based organization.

Furthermore, you must affirm that all of the following are true:

• Applicant is not engaged in any illegal activity (as defined by Federal guidelines).
• No principal of the Applicant with a 50 percent or greater ownership interest is more than sixty (60) days delinquent on child support obligations.
• Applicant is not an agricultural enterprise (e.g., farm), other than an aquaculture enterprise, agricultural cooperative, or nursery.
• Applicant does not present live performances of a prurient sexual nature or derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature.
• Applicant does not derive more than one-third of gross annual revenue from legal gambling activities.
• Applicant is not in the business of lobbying.
• Applicant cannot be a state, local, or municipal government entity and cannot be a member of Congress.

Step 1: Business information

• Business legal name
• Trade name
• The EIN (or SSN, for a Sole Proprietorship)
• Organization type
• Whether the applicant is a non-profit organization
• Whether the applicant is a franchise
• Gross revenues for the twelve months prior to Jan. 31, 2020
• Cost of goods sold for the twelve months prior to Jan. 31, 2020
• For some types of applicants: ** Rental properties (rental and commercial only) - lost rents due to the disaster ** Non-profit cost of operation for the twelve months prior to Jan. 31, 2020 ** Combined annual operating expenses for the twelve months prior to Jan. 31, 2020 for all secular social services provided by the faith based entity ** List of secular social services provided by the faith based entity
• Compensation from other sources received as a result of the disaster, and a brief description
• Primary business address (not a P.O. Box), including the county
• Business phone, fax (if applicable), and email
• Date the business was established
• How long the current ownership has been in place
• The business activity and detailed business activity
• The number of employees as of Jan. 31, 2020

Step 2: Business owners information

For every individual owner, you’ll need to include:

• First and last name
• Mobile phone
• Title
• Ownership percentage
• Email
• Social security number
• Birth date
• Place of birth
• Whether this person is a US citizen
• Residential street address, city, state, and zip

Step 3: Additional information

You’ll be asked three questions:

In the past year, whether the business or a listed owner been convicted of a criminal offense committed during and in connection with a riot or civil disorder or other declared disaster, or ever been engaged in the production or distribution of any product or service that has been determined to be obscene by a court of competent jurisdiction?

Is the applicant or any listed owner currently suspended or debarred from contracting with the Federal government or receiving Federal grants or loans?

1. Are you presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction?
2. Have you been arrested in the past six months for any criminal offense?
3. For any criminal offense - other than a minor vehicle violation - have ou ever been convicted, plead guilty, plead nolo contendre, been placed on pretrial diversion, or been placed on any form of parole or probation (including probation before judgement)?

You’ll also be asked:

• If anyone has assisted you in completing the application, and if so he name, company name, phone number, street address, and the fee charged.
• To confirm that you would like to be considered for an advance of up to $10,000
• Your bank name, account number, and routing number
• Finally, certify that all the information you’ve entered is true and correct.

Ready?