If you acted quickly after the CARES (Coronavirus Aid, Relief, and Economic Security) Act was passed to get your application in with the U.S. Small Business Administration (SBA) for an economic injury disaster loan (EIDL), you might want to check in on that application. If you used an online application portal or your bank did when they helped you with the loan, then your application could have been lost in the shuffle when the SBA shut the portal down over security concerns.
According to SBA spokesman Matt Coleman, applicants should use revamped website covid19relief.sba.gov to complete the brief online application and then await a response from the SBA. If appropriate, the SBA will request financial documents about the business after the initial application is completed. Coleman said anyone who submitted applications via email, fax, snail mail, or through the portal should reapply.
“Confirmation is sent via U.S. Mail and applicants also receive email correspondence,” Coleman said. “Additional information may be requested, but they receive a confirmation of the application first.”
The Repetition Protects Your Personal Information
The SBA initiated the new process and portal after learning at least 100 business owners’ personal information had been exposed online. While the portal was down but before the new system was in place, business owners were instructed to download PDFs of the application, fill them out, and then email, fax, or post them to the SBA. Those applicants should also reapply, Coleman said.
Coleman said that business owners who reapply for their loans “ensure they are considered for an advance of $10,000 on the loan.” That advance is not contingent on the loan application being approved.
SBA disasters loans are capped at $2 million per applicant and may be repaid over 30 years. Eligible businesses must have 500 or fewer employees, and the interest rate is 3.75 percent. Nonprofit organizations may qualify for interest rates of 2.75 percent.
Did you apply for an SBA loan? Have you reapplied? Why or why not?
Thank you for reading the Bryan Ellis Investing Letter!
Your comments and questions are welcomed below.