The Small Business Administration (SBA) has deemed ALL states in the disaster zone, which means that you can apply for an SBA Disaster Relief Loan. The SBA is offering designated states low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). The intent of the loans is to help alleviate economic injury caused by the Coronavirus. It can be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact.
Getting approved just became easier for small businesses. However, there are things you can today to increase your chances of approval, as well as decreasing the time for funding.
Here are 5 things you can do NOW to prepare for an SBA loan:
- Compile three years of personal and business tax returns. Personal tax returns are for any individual who owns 20% or more of the company.
- Try to get your 2019 tax returns done as soon as possible. If your accountant is not close, they will need your 2019 year end financials.
- Produce personal financial statement for any owner who owns more than 20% of the company. A link to download can be found here.
- Make a debt schedule for your business. A link can be found here.
- Go into your accounting software and figure out your monthly operating expenses from March through August of last year. If this is not clear, ask your bookkeeper or accountant for help. This data will be an important part of your loan application.
During these challenging times, we are here to help provide information, capital, advice, and encouragement to get through it and thrive afterwards. We are here to serve you. Stay safe and protect your families and employees.