1400 Second Avenue, Watervliet, NY 12189 518.270.9243

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In response to the Covid-19 Coronavirus Pandemic, the Small Business Administration (SBA) has launched a special loan program for businesses directly impacted.  Here is a brief summary of information and links to the SBA website.

  • The SBA’s recommendation is to fill out the application even if you think you may not need funds. The application process will be long (upwards of 21 days) and loans will be awarded on a first come first serve basis.
  • There also maybe additional loan programs offered later that might use the same application so worst case, you can use the application for a different program.
    • There is no obligation to take the funds if you are approved.
    • There is no fee to apply.
    • Application is online and you can set up an appointment through the SBA website to receive help with the application process if needed.
  • The loan is a working capital loan and the loan amount will be based on estimated losses and the business’ historical performance (tax returns required).
  • You can use loan proceeds for general working capital, payroll, overhead, and fixed costs.
  • You cannot use loan proceeds for personal expenses and/or to refi/consolidate other debt
    • Single member LLCs with no employees need to be careful to document how funds will be used for external costs.
  • Maximum loan amount is $2million
  • Interest rate is 3.75%
  • Loan term is up to 30 years.  The SBA will work with each business on a case by case basis to determine an appropriate repayment schedule.
  • There is no prepayment penalty.
  • All loans will receive a 6-month deferral.
  • Loan of $25,000 or less = no collateral required
  • For loans above $25,000 = SBA will take what collateral it can (e.g. even a secondary, 3rd, 4th or 5th position).
  • Business owners may not be eligible if previously defaulted on an SBA loan, or historically poor credit.
  • If you have more than one business, each business can apply.
  • Your business does not need have to be closed to apply.
  • If you currently have an SBA line of credit, or a line of credit with another institution, SBA wants you to maximize your existing credit before you obtain funds under this program; however, you can still apply and on the application note that you anticipate maxing out your line and expect to run out of funds at some point in the future.
  • There is an additional comments section on the application.  Use this to describe your injury in detail and include NYS specific facts because the reviewers will most likely not be in NYS. You should not assume the reviewer will be aware of Governor Cuomo’s executive orders that had a direct impact on your business.  Describe how your business has been impacted and discuss strategies for continuing to stay open (if possible under executive orders) or how you will reopen when you can, as this bolsters the case for your business’ ability to repay the loan.
  • The following industries are not eligible: agriculture, religious organizations, charitable organizations, gambling related businesses.

For additional information, or to apply, go to https://disasterloan.sba.gov/ela/

Dalle Acounting

1400 Second Avenue
Watervliet, NY 12189
P 518.270.9243
F 518.270.9245