The Small Business Administration's (SBA) disaster loans are the primary form of Federal assistance for the repair and rebuilding of non-farm, private sector disaster losses. The disaster loan program is the only form of SBA assistance not limited to small businesses.
The Economic Injury Disaster Loan Program (EIDL) can provide up to $2 million of financial assistance (actual loan amounts are based on amount of economic injury) to small businesses or private, non-profit organizations that suffer substantial economic injury as a result of the declared disaster, regardless of whether the applicant sustained physical damage.
An EIDL can help you meet necessary financial obligations that your business or private, non-profit organization could have met had the disaster not occurred. It provides relief from economic injury caused directly by the disaster and permits you to maintain a reasonable working capital position during the period affected by the disaster. EIDLs do not replace lost sales or revenue.
To be eligible for EIDL assistance, small businesses or private non-profit organizations must have sustained economic injury and be in a disaster declared county or contiguous county.
Program Application Process
The process to apply for the Economic Injury Disaster Loan can be a simple process and completed either by the borrower, a legal representative such as an attorney or accountant, an Agent, or by a local bank. The application can be submitted online or via USPS mail. The link to apply https://www.sba.gov/disaster/apply-for-disaster-loan/index.html.
Associated Fees for EIDL
If you select an Agent, or a Bank, to complete your application. The agent or bank may charge you a fee ranging from $250-$2500 or higher. Any amount above $2500 must be itemized and agreed upon by you and the SBA. If those fees are deemed excessive or not in required by the SBA, those fees can be denied, and you will not be required to pay them to the Agent or provider that completed your application. The fees charged by a provider, Agent, or Bank are non-refundable fees and are not paid as a commission on the Economic Injury Disaster Loan. These fees if charged by a provider, Agent, or Bank are charged and owing regardless of your ability to secure the loan. It is recommended before entering a contractual relationship or hiring a provider, Agent, or Bank you carefully read all services provided, agree to the services provided, and understand your rights as well as risk for those agreement.
Timeline of Application and Decision
The SBA are receiving hundreds of thousands of applications. The approval process and decision will vary on a case by case basis. The ideal situation would be upon submission of a clear and concise application. The decision for approval is within 2 to 8 weeks. Many business owner(s) will also seek bridge financing which will be included in the Economic Injury Disaster Loan while the decision is pending.
Why SpotOn Financial
SpotOn Financial is a financial services and business consulting firm. Unlike a bank, we do not recommend a single lending solution or product. We underwrite our clients and we seek out financing is structured from our client’s perspective and not a lender. In addition, unlike a bank we help a business owner develop a plan to grow, manage, and if necessary, exit his or her business with value and profits in mind.
SpotOn Financial has helped secure financing for over 3,800 businesses over the past 9 years. Of those loans, SpotOn Financial has helped clients secure SBA 7A and SBA 504 funding. We have helped clients repair or establish business credit.
We have helped clients purchase, renovate, and refinance commercial real estate in 17 states for an excess of $49 Million dollars. We are not a massive company, we treat each client with integrity, transparency, and value focused. Our goal is helping our clients build successful small businesses.
SpotOn Financial shall act as your agent and loan packaging provider for the SBA Economic Injury Disaster Loan. Our responsibility shall include but not be limited to the following:
· Provide Client All Necessary Documentation Required to Submit for Relief Under EIDL guidelines.
· Provide complete and accurate information to the SBA to the benefit of the client. Our role will be as a facilitator to address concerns, questions, or historical documentation gaps or deficiencies.
· Accurately inform client of status of application process and proceeds if approved by the SBA to include timeline of funding.
· Provide support services to client to navigate all requests from the SBA, underwriter, processor, or third-party services necessary to complete the submission, review, and decision process involving the application.
SpotOn Financial Offer of Services
SpotOn Financial shall offer a flat fee for loan review, loan packaging, and loan submission in the amount of $2,500 per loan application submission. The fee shall be paid in advance of submission of application and acceptance of application by the SBA.
All fees shall be paid by wire transfer or ACH. The payment shall be due upon acceptance of the services contract provided by SpotOn Financial. All fees within the agreement shall also be declared to the SBA upon submission of application and listed on Form 13 C.F.R ., Part 103.5.
The client by hiring SpotOn Financial shall agree in terms and hold harmless SpotOn Financial, its employees, processors, underwriters, vendors, and partners in the even the Client’s application is denied for any reason, specifically no warranty or guarantee of loan acceptance, approval, or agreement for funding is implied, either orally or via written agreement and no such promises are made by SpotOn Financial. SpotOn Financial shall make best efforts to ensure each application results in a satisfactory approval. However, SpotOn Financial has no influence or decision-making powers in any way and the final decision shall be made by the SBA, its employees, underwriters, and authorized credit committee.
The process to get started is fast and easy! You can simply call 844.622.5666 and ask for the Economic Injury Disaster Loan agent. Once connected you can request a service contract for your review, once signed you simply return with payment. You will be scheduled for your intake interview and provided a list of documents for underwriting and review. Upon review of those documents, the application process will begin, and all necessary forms submitted to the SBA for review.
While the vast majority of businesses are eligible for financial assistance from the SBA, some are not.
Eligible businesses must meet the following:
o Operate for profit
o Be engaged in, or propose to do business in, the U.S. or its territories
o Have reasonable owner equity to invest
o Owner of good moral character
o Use alternative financial resources, including personal assets, before seeking financial assistance
o Business must not be involved in business that violates Federal law.
Coronavirus Aid, Relief, and Economic Security (CARES) Act was recently passed to provide emergency relief for small- to medium-sized businesses disrupted by COVID-19. The Act created the Paycheck Protection Program, which will serve as an extension of the Small Business Administration (SBA) 7(a) loan program, allowing financial institutions to provide federally-backed, forgivable loans to eligible businesses.
Paycheck Protection Program Provisions:
We ask you to understand this information is preliminary and is subject to change. As the SBA continues to publish program guidance about the Paycheck Protection Program, we are committed to keeping valued our clients informed.
Be sure to check this site regularly as we work to provide you with provision updates as they become available.