SBA relaxes loan criteria for small businesses in states impacted by coronavirus
On March 17, 2020, the Small Business Administration (SBA) announced that it was revising its criteria for states or territories seeking an economic injury declaration related to coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loans is offering up to $2 million in assistance to provide critical economic support to small businesses experiencing a temporary loss of revenue due to the coronavirus pandemic.
The relaxed criteria will have two immediate impacts:
1) Faster, Easier Qualification Process for States Seeking SBA Disaster Assistance
States or territories are now only required to certify that at least five small businesses within the state/territory have suffered substantial economic injury, regardless of where those businesses are located. Historically, the SBA has required that any state or territory impacted by disaster provide documentation certifying that at least five small businesses have suffered substantial economic injury due to a disaster, with at least one business located in each declared county/parish.
2) Expanded, Statewide Access to SBA Disaster Assistance Loans for Small Businesses
Disaster assistance loans will now be available statewide following an economic injury declaration. This will apply to current and future disaster assistance declarations related to coronavirus. Typically, SBA disaster assistance loans are only available to small businesses within counties identified as disaster areas by a governor.
For more information, visit the Coronavirus (COVID-19) resources section on the SBA website.
CohnReznick has assembled a national task force to assist businesses in filing for low-interest SBA federal disaster loans and providing required financial documentation.
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