Nancy McKee with MS SBDC has highlighted guidelines on SBA Economic Injury Disaster Relief Loans for businesses:
The Assessment forms from MEMA for SBA Economic Injury Disaster Relief sent out last week to our businesses has been made null and void due to Mississippi being deemed by the government as a disaster area due to COVID-19 this past Friday. We are all learning as we go through this process and it is changing every day. So, businesses now have two options to apply for assistance:
Emergency Injury Disaster Loan- Businesses can apply today at https://covid19relief.sba.gov/#/
- If you are a business under 500 employees
- NAICS Sector Code 72-Food & Accommodations(Given Preference)
- Have a Good Credit History
- Physically Located in County of the disaster
Funds can be used for-
- Working Capital
- Accounts Payable
- Other Bills
- Does not cover costs for Expansion
Up to $2 million at 3.75% interest for businesses with terms of up to 30 years. If you are applying for over $25,000 you must have collateral.
There is another SBA Loan in the works with information being made available this Friday. It is referred to as CARES Act. It will be for the same businesses as mentioned above and will require the same information. The main differences in the loans is the CARES Act is only available through your Financial Lender and it will provide loan forgiveness for monies going towards payroll, rent, mortgage, utilities, etc. Nancy McKee encourages businesses to go ahead and apply for the 1st one available for business owners to apply online TODAY for the Economic Injury Disaster Loan https://covid19relief.sba.gov/#/. Once the CARES Act is finalized, you can then take this information and apply with your lender. You are not obligated if approved nor are you locked into the amount. If you determine less money is needed, it can be amended.
Here is your checklist to get all materials needed together in order to apply
Please contact Vaunita Martin at 1-662-210-1505 or by email at email@example.com with questions or concerns.