HERE'S WHAT YOU NEED TO KNOW TO GET A FEDERAL DISASTER RELIEF BUSINESS LOAN

Q: Where can I apply for an SBA disaster loan?
There are three ways to apply for an SBA disaster assistance loan. The SBA operates an online portal where you can upload business documents and apply for a loan. You can also fill out the PDF documents linked on the agency’s website and mail them to SBA’s processing and disbursement center at 14925 Kingsport Rd., Fort Worth, Tex., 76155-2243. The agency’s forms say applicants can also submit forms in person at an SBA disaster center but it is unclear which locations are open.

Q: Who qualifies for these small business loans?
Businesses in any U.S. state with fewer than 500 employees who are unable to pay their bills because of the coronavirus pandemic.

Q: How long will it take?
After you submit an application, the SBA will review your credit before conducting its own inspection to verify your losses. This includes reviewing any insurance recoveries you may have. The agency can issue you a loan while recoveries are pending.
The SBA says its goal is to arrive at a decision on any disaster loans within two to three weeks. If it determines you are eligible, it will send you a loan closing document for your signature.

An initial disbursement of $25,000 will arrive within five days, according to SBA informational materials. The rest of your loan will be disbursed on a schedule until you receive the full amount. The schedule will be set by an SBA loan officer whose job is to ensure you meet all the loan conditions.

Q: How much can I get through an SBA disaster loan?
Small businesses, small agricultural cooperatives or private nonprofit organizations can borrow up to $2 million for “economic injury,” meaning the organization cannot pay its ordinary and necessary operating expenses because of the coronavirus pandemic. President Trump has declared the coronavirus pandemic a national emergency.

Q: What will the interest rate be?
Interest rates on these loans are 3.75 percent for small businesses and 2.75 percent for nonprofits.

Q: What information will I be asked to provide?
Loan applicants are asked to provide a transcript of your most recent tax return and a tax information authorization form, a detailed accounting of your personal assets, sources of income and unpaid taxes. Those additional forms and instructions are posted here on the agency’s website. You will also have to include names and personally identifiable information for all proprietors, partners or stockholders who own at least 20 percent of the business.

Nonprofit organizations can substitute tax returns for the organization’s IRS tax-exempt certification along with complete copies of the organization’s statement of activities.

Q: What if I haven’t filed my taxes yet?
​In lieu of a tax return, the SBA asks for a year-end profit-and-loss statement and balance sheet for that tax year.
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POSTED BY:  JENNIFER MUSSATO
​Jennifer Mussato is president at Denver-based First and Main RE brokered by Keller Williams, a real estate group that specializes in commercial leasing, acquisitions, dispositions and investment strategies.

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