Please Understand The Economic Injury Disaster Loan Program will have inherent
delays in processing applications and is not a quick process. As our business
advisors will assist our clients in understanding the application process, please be
aware of potential time constraints and delays that may occur.

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SBA Disaster Assistance in Response to the Corona virus
Economic Injury Disaster Loan Program

The Stony Brook SBDC is one of the SBA's designated Partners to provide support services
for this effort. For more information and guidance in submitting your application, please
contact us by Clicking Here
Click Here To make an online appointment with one of our Business Advisors

Key points about Disaster Relief due to Coronavirus
https://www.sba.gov/funding-programs/disaster-assistance

• The U.S. Small Business Administration is offering designated states and territories low-interest
federal disaster loans for working capital to small businesses suffering substantial economic injury
as a result of the Coronavirus (COVID-19).                                                                                        

• Eligibility- The applicant  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.
Examples of eligible industries include but are not limited to the following: hotels, recreational 
facilities, charter boats, manufacturers, sports vendors, owners of rental property, restaurants,    
restaurants, retailers, souvenir shops, travel agencies, and wholesalers.                                        

• SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and 
can provide vital economic support to small businesses to help overcome the temporary loss of 
revenue they are experiencing.

• These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be 
paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit 
available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate      
for non-profits is 2.75%.

• SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 
30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

• Criteria for a loan approval
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.

• Collateral requirements 
-Economic Injury Disaster Loans over $25,000 require collateral which means the maximum unsecured loan amount is $25,000.
-SBA takes real estate as collateral when it is available.
-SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available.

• Applicants can have an existing SBA Disaster Loan and still qualify for an EIDL for this disaster, but the loans cannot be consolidated.

(Disaster: NY-00197)
Incident: CORONAVIRUS (COVID-19) occurring: January 31, 2020 & continuing
All counties within the State of New York; the contiguous Connecticut counties of: Fairfield 
and Litchfield; the contiguous Massachusetts county of: Berkshire; the contiguous New Jersey counties of: 
Bergen, Hudson, Passaic and Sussex; the contiguous Pennsylvania counties of: Bradford, Erie, McKean, 
Pike, Potter, Susquehanna, Tioga, Warren and Wayne; and the contiguous Vermont counties of: Addison, 
Bennington, Chittenden, Grand Isle and Rutland
Application Filing Deadline: December 21, 2020

Disaster Loan Assistance Available:
Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural 
cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes 
meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. 
These loans are intended to assist through the disaster recovery period.

Credit Requirements:
Credit History – Applicants must have a credit history acceptable to SBA.
Repayment – Applicants must show the ability to repay the loan.
Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available.
SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.

Interest Rates:
The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum 
interest rate for this program is 3.750 percent.

Loan Terms:
The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment 
payment based on the financial condition of each borrower, which in turn will determine the loan term.

Loan Amount Limit:
The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount 
of each loan is limited to the economic injury determined by SBA, less business interruption insurance and 
other recoveries up to the administrative lending limit. SBA also considers potential contributions that are 
available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, 
SBA has the authority to waive the $2,000,000 statutory limit.

Loan Eligibility Restrictions:
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be 
eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.

Note: Loan applicants should check with agencies / organizations administering any grant or other assistance 
program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.

Refinancing:
Economic injury disaster loans cannot be used to refinance long term debts.

Insurance Requirements:
To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate 
insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area 
must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 
1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available.
Applicants may apply online, receive additional disaster assistance information and download applications at 
https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 
or emaildisastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are 
deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small 
Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

H.R.6201, FAMILIES FIRST CORONA VIRUS RESPONSE ACT
The legislation provides paid leave, establishes free testing, protects public health
workers, and provides important benefits to children and families.

Governor Cuomo on Guarantee Paid Leave for New Yorkers Under Mandatory or
Precautionary Quarantine Due to COVID-19

NY DoL Shared Work Program applications available:
The program allows employees on a reduced schedule to collect unemployment for days not 
worked helping to offset reduced incomes. NY is apparently moving much more quickly than 
other states and the program is a great way to help reduce expenses while retaining 
employees. For more information visit
https://www.labor.ny.gov/ui/employerinfo/shared-work-program.shtm

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Businesses for 40 Years!!