Small Business Financial Assistance Available to Provide Working Capital
24 Mar 2020
The U.S. Small Business Administration Economic Injury Disaster Loan (EIDL) program is available to small businesses and private non-profit organizations in Wisconsin that have suffered revenue declines and had their working capital adversely impacted by COVID-19. Applications are being taken 24-7 via their website at https://disasterloan.sba.gov/ela/.
For most small business the application will consist of the following:
- Application (SBA Form 5), completed and signed (Its only 2 pages)
- Tax Information Authorization (IRS Form 4506T), completed and signed by each applicant, each principal, each general partner or managing member; and, for any owner who has greater than 50 percent ownership in an affiliate business.
- Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business
- Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, general partner or managing member
- Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used)
EIDL loans can be up to $2M. Funds can pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Terms can be extended up to 30 years. These loans are only intended as working capital loans to assist with impact caused by the coronavirus emergency efforts.
Loan applications will be evaluated by SBA loan officers. Criteria include:
- Eligibility - business must be headquartered in a declared state and suffered working capital losses due to the declared disaster (not a general downturn in business due to the economy or other reasons
- Credit history acceptable to the SBA
- Repayment ability
The SBA will be offering webinars every day this week to help Wisconsin businesses prepare and apply for EIDL loans. These webinars will be offered every day through this Friday, March 27, 2020 at 10am CDT and 2pm CDT.
Register for a 10am webinar here. https://register.gotowebinar.com/rt/5640391702091014155
Register for a 2pm webinar here. https://register.gotowebinar.com/rt/476803623078604299
- SBA resource partners SBDC and SCORE are offering free mentoring assistance to small business owners including guidance thorough the EIDL application process. In Western Wisconsin SCORE can be reached at https://stpaul.score.org/ and the SBDC at https://www.uwrf.edu/CBE/Centers/SmallBusinessDevelopmentCenter/
- The Greater St. Croix Valley County Economic Development Corporations are here to assist