Indiana Small Business for COVID-19
Are you ready to apply for an SBA Economic Injury Disaster Loan?
SBA Offers Disaster Assistance to Indiana Small Businesses Economically Impacted by the Coronavirus (COVID-19). Here are crucial aspects to applying for the Economic Injury Disaster Loans (EIDLs):
- Credit History – Applicants must have a credit history acceptable to SBA.
- Repayment – Applicants must show the ability to repay the loan.
- Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
Summary of the Loan:
The maximum interest rate for For-Profit businesses is 3.75% up to 30 year term (based on the financial condition of the borrower).
Max amount for an EIDL is $2,000,000 but limited to the actual economic injury less insurance or other recoveries.
Check with any grants or other assistance programs to make sure the loan doesn’t conflict, and the loan cannot be used to refinance long term debts. Finally, the SBA may require you to get insurance.