Texas Small Biz Owners Can Apply For Coronavirus Disaster Loans

AUSTIN, TX — The U.S. Small Business Administration has announced the deadline to apply for a COVID-19 pandemic Economic Injury Disaster Loan has been extended until year's end.

To date, SBA has approved $197 billion in low-interest loans, which provide U.S. small businesses, non-profits, and agricultural businesses working capital funds of up to $2 million to sustain their operations amid coronavirus-spurred shortfalls. Economic Injury Disaster Loan applications will continue to be accepted through Dec. 31 pending the availability of funds, officials wrote in an advisory.

Loans are offered at affordable terms, including a 3.75 percent interest rate for small businesses and 2.75 percent for non-profit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. All eligible small businesses and nonprofits are encouraged to apply.

Visit the Disaster Loan Assistance page to complete profile, download forms

Learn more and apply for an Economic Injury Disaster Loan

Gov. Greg Abbott in March announced the SBA had granted Texas’s Economic Injury Disaster Loan assistance declaration, making loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19).

Small business owners who believe they may be eligible for a loan are directed to visit the SBA website to apply for assistance. The online application is the fastest method to check on eligibility.

At the program's initial introduction, the SBA website reportedly experienced multiple crashes due to high demand. As a result, it's recommended residents submit their applications during the hours of 7 p.m. to 7 a.m. to help prevent this from happening.

The five documents on the website applicants will need to complete are:

• IRS Form 4506-T.
• Personal Financial Statement (SBA Form 413).
• Schedule of Liabilities & Fixed Assets (SBA Form 2202).
• Monthly Sales (SBA Form 1368).
• Home Loan (SBA Form 5c), if applicable.

Below is the list of ten documents applicants should assemble and scan to prepare for uploading them into the Economic Injury Disaster Loan website:

• Corporate governance documents; e.g., Articles of Incorporation, Articles of Organization (for LLC), or Registration of Sole Proprietorship.
• A written narrative statement justifying the nature and scope of economic injury and how/why nature of the business was adversely impacted by the Coronavirus (one page/no more than two), such loss of revenues, canceled contracts, interrupted supply chain, etc.
• Current Accounts Payable and Accounts Receivable Aging as of the date of filing for the loan.
• Three (3) years’ 1040 Federal Income Tax Returns for the business and owners.
• Company and Owners’ Debt Schedule Tables [e.g., Lender, original loan amount., date, current balance, interest rate (F or V?), collateral, the purpose of the loan, guarantors, status (e.g., current or past due with explanation) per row in the table].
• Monthly (reasonably detailed) two (2) years cash flow projections.
• Three (3) years’ Monthly Sales History up to date of filing for a loan.
• Current copies of owners’ credit reports from the three (3) credit bureaus with explanations for any negative reports.
• Required SBA Forms (of all owners, co-owners and principals owning 20 percent or more of the small business): IRS Form 4506-T, Personal Financial Statement (only on SBA Form 413), Schedule of Liabilities and Fixed Assets (SBA Form 2202), Monthly Sales (SBA Form 1368), Home Loan (SBA Form 5c).