On Tuesday, March 17, Texas Governor Greg Abbott requested designation from the Small Business Administration (SBA) Economic Injury Disaster Declaration to access the Economic Injury Disaster Loan (EIDL) program for the entire state of Texas. The designation makes long-term, low-interest SBA loans available to qualifying businesses across the state.
When submitting an application for an Economic Disaster Loan, the following financial and accounting information will be required for most applicants. To streamline the process, applicants should have the following documents ready to upload into the SBA Disaster website as soon as it opens for the Coronavirus emergency relief for Central South Texas:
- Written narrative statement justifying the nature and scope of economic injury and how/why nature of business was adversely impacted by the Coronavirus (one page/no more than two), such loss of revenues, cancelled contracts, interrupted supply chain, etc.
- Current Accounts Payable and Accounts Receivable Aging as of date of filing for the loan
- Three (3) years’ 1040 Federal Income Tax Returns for the business & owners
- Three (3) years’ company FYE Income Statement and Balance Sheet and latest YTD Financial Statements (Company prepared)
- Company and Owners’ Debt Schedule Tables [e.g., Lender, original loan amt., date, current balance, interest rate (F or V?), collateral, purpose of loan, guarantors, status (e.g., current or past due with explanation) per row in table]
- Monthly (reasonably detailed) two (2) years cash flow projections
- Three (3) years’ Monthly Sales History up to date of filing for loan
- Current copies of owners’ credit reports from the three (3) credit bureaus with explanations for any negative reports
- Owners’ Personal Financial Statements (SBA Form 413)
- SBA Form of Personal History for each (10% or more) owner
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. Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses, and the interest rate for private non-profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
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 email email@example.com 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.