March 2020

Applicants must meet the SBA requirements of a small business (500 employees or fewer)
Businesses directly affected by COVID-19
Businesses that offer services directly related to the businesses in the declaration
Other businesses indirectly related the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product)

• Agricultural Enterprises: If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance.
• Religious Organizations
• Charitable Organizations
• Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities)
• Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of 1/3 criteria above.
• Cannabis Industry

• Credit History: Applicants must have a credit history acceptable to SBA.
• Repayment: SBA must determine that the applicant business has the ability to repay the SBA loan.
• Eligibility: The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.

• Eligible entities may qualify for loans up to $2 million. 
• The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years. 
• Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.  

• Eligible entities may qualify for loans up to $2 million. 
• The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years. 
• Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.  

• Completed SBA loan application (SBA Form 5).
• Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates.
• Complete copies of the most recent Federal Income Tax Return.
• Schedule of Liabilities (SBA Form 2202).
• Personal Financial Statement (SBA Form 413).
• Income, balance sheet, and cash flow documents.
• Other Information may also be requested.

• Complete copy, including all schedules, of the most recent Federal income tax return for principals, general partners or managing members, and affiliates (see filing requirements for more information)
• If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year
• A current year-to-date profit-and-loss statement
• Additional Filing Requirements (SBA Form 1368) providing monthly sales figures (This is especially important for Economic Injury Disaster Loans)

• Small businesses that submit complete loan packages could receive the money within three (3) weeks
• Incomplete information and verification of collateral will delay the approval process

• Include the specific disaster in your application – specifically reference “COVID-19” or Coronavirus
• Apply online vs by mail (Applying online is best)
• Write your password down; neither the system nor any personnel are able to retrieve it
• Save your work at every prompt
• Do not rush through the application. Check and recheck the filing requirements to ensure that all the needed information is submitted. The biggest reason for delays in processing is due to missing information.
• Make sure to complete all filing requirements before submitting the application and forms
• Be sure to use the same contact information (business name and the name of all owners) that you use on your federal tax returns. Double-check that they match
• If your tax returns reference other businesses that you own, you must also submit those tax returns in order to avoid processing delays
• If more funds are needed, applicants can submit supporting documents and a request for an increase. If fewer funds are needed, applicants can request a reduction in the loan amount.
• If the loan request is denied, the applicant will be given up to six months in which to provide new information and submit a written request for reconsideration

• As you consider applying for the different federal funding sources available for Colorado businesses, the following information can help you make the best choices for your situation: 

   

  1) Federal funds carry program-specific restrictions and it’s important to know and protect your options. Review each program thoroughly. Your approval and acceptance of a loan from one federal program may cause you to be fully or partially ineligible for other sources of federal funding. 

   

  2) Different federal funding such as loans and grants from multiple agencies will roll out at different times, so it’s important to consider the timing of the funding source.   

   

  3) Federal economic disaster recovery loans are accessible right now for qualified businesses; however, no federal economic disaster recovery grants have been announced. Unfortunately, for businesses seeking immediate help, there is no way to predict which future federal tools – including grants – may be employed as COVID continues to impact the US economy. This can place businesses in the challenging position of weighing an immediate federal tool against the possibility of future programs that may or may not be offered, with requirements yet to be determined.   

   

  We are committed to sharing news of all new economic recovery resources (both state and federal) as they become available and are here to be your guide through this challenging time.

• All Colorado counties are represented as being located in a certified disaster declaration area. Currently the site is struggling with the traffic load. We would encourage anyone who can to access the site after peak hours (7pm to 7am MST).

• Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela
• Paper loan applications can be downloaded from www.sba.gov/disaster. Completed applications should be mailed to:
  U.S. Small Business Administration
  Processing and Disbursement Center
  14925 Kingsport Road
  Fort Worth, TX 76155
• Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov.

SBA EIDL Application Training PowerPoint

#https://disasterloan.sba.gov/ela