SBA and Access to Economic Injury Loans

3/18/20
- Size standards are still in effect.
- You must have an explainable credit history (they will consider medical and other life changes).
- You must have the ability to repay the loan. Please note that these loans can have expanded terms up to 30 years to keep the monthly payments low.
- SBA will be required to take all available collateral until the loan is repaid.
The website will help you to determine the loan amount you will need based on factors including your monthly burn rate:
- Current debt obligations including SBA and 3rd party loans
- Lease/Rent
- Fixed liabilities including payroll and benefits for critical employees
- Costs to not only stabilize your operation but prepare you for recovery
- Individual contractors are also able to apply
Normally the SBA would fund the above for 3-6 months, however it is allowing small businesses to request up to 12 months. The team at the SBA can help you with calculating your costs to determine how large your Economic Injury loan should be. You will also need to share historical income for the past 3 years with the SBA to help them understand your business cycles to further support your loan amount.
If your small business applies for a loan of $25,000 or less, the ODA will be able to streamline the process without requiring documentation – only a signature – to deliver funds as quickly as possible. All other loans are expected to take between 2-3 weeks from application to funding.
If you currently have a loan through the SBA, this will not affect your loan limit of $5MM. Regular SBA loans and the Economic Injury loans are funded separately from two different sources.
In the remote chance that your small business is not approved, the SBA is working with banking institutions to find other options to fund your operations to keep your doors open.
Deadline to apply is December 17, 2020.
If you have any questions, please call the SBA District Office at 702/388-3611. Please be patient as they are receiving a high volume of calls.
You can also call the Governor’s Office of Economic Development at 702/486-2700.
The Downtown Vegas Alliance hopes that this information is helpful to you and your business during this challenging time. As we learn more, we will be sure to share updates with our members.