New federal legislation has opened up the possibility for small businesses to receive assistance for economic loss due to COVID-19. Details of eligibility and administration of this assistance from Small Business Administration (SBA) are still being addressed by the SBA.
However, the traditional SBA Economic Injury Disaster Loan (EIDL) program will still apply for COVID-19.
- If a small business has suffered substantial economic injury as a result of COVID-19, it may be eligible for financial assistance from the U.S. Small Business Administration.
- U.S. Small Business Administration is allowing businesses to forecast economic losses due to events that bring in high revenues being canceled due to the COVID-19.
- Small businesses and small agricultural cooperatives that have suffered substantial economic injury may be eligible for the SBA’s Economic Injury Disaster Loan (EIDL) Program.
- Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses.
- An EIDL can help meet necessary financial obligations that a business could have met had the disaster not occurred.
- It provides relief from economic injury caused directly by the disaster and permits the business to maintain a reasonable working capital position during the period affected by the disaster.
- The SBA provides EIDL assistance only to those businesses that SBA determines are unable to obtain credit elsewhere.
- The loan amount will be based on the business’ actual economic injury and financial needs.
- The interest rate on EIDLs cannot exceed 4% per year.
- The term of the loans cannot exceed 30 years.
- Terms and conditions will be determined by the business’ ability to repay the loan.
Richard Diaz, deputy emergency services coordinator at the Sonoma County Department of Emergency Management is asking businesses to email the completed form to both their local chamber of commerce and their city manager. (Businesses in unincorporated areas can just send to their chamber.)
Find the form in the sidebar of this article at sonomawest.com.
Linda Collins, Chamber of Commerce, [email protected]
Larry McLaughlin, [email protected]
Greater west county: Karin Moss, Russian River Chamber of Commerce, [email protected]
Lorene Romero, Chamber of Commerce, [email protected]
City Manager Ken McNab,[email protected]
Tallia Hart, Healdsburg Chamber of Commerce, [email protected]
City Manager David Mickaelian, [email protected]
Neena Hanchett, Cloverdale [email protected]
City Manager David Kelley, [email protected]
There is currently no deadline for this submission, Diaz said.
“We’re right at the beginning of this crisis,” he said. “No one knows how long its going to play out or how much damage there will be, so there is currently no deadline.”