Stony Brook SBDC
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
• 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.
• The Application Process – What documentation is needed:
-Completed SBA loan application (SBA Form 5 or 5C)
-Tax Information Authorization (IRS Form 4506T)
-Complete copies of the most recent Federal Income Tax Return.
-Schedule of Liabilities (SBA Form 2202).
-Personal Financial Statement (SBA Form 413).
-Other information may also be requested.
• How to Apply – Disasterloan.sba.gov
Although a paper application and forms are acceptable, filing electronically is faster and more accurate.
There is no cost to apply and there is no obligation to take the loan if offered.
The biggest reason for delays in processing the disaster loan application is due to missing or incomplete information.
Make an appointment with a Business Advisor to avoid this most common mistake.
• Visit SBA.gov/disaster for more information.
U.S SMALL BUSINESS ADMINISTRATION
FACT SHEET - ECONOMIC INJURY DISASTER LOANS
NEW YORK Declaration 16346
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 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.
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.
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.
Economic injury disaster loans cannot be used to refinance long term debts.
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 firstname.lastname@example.org 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.
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
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