Assistance from the Small Business Administration
The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to California small businesses suffering substantial economic injury as a result of the COVID-19.
On March 16, 2020, San Diego County was declared a primary county due to the magnitude of Economic Injury Disaster Loan worksheets that were submitted to our office from local businesses.
The California Governor’s Office of Emergency Services (Cal OES) has provided the attached information regarding this declaration. The attachment provides information pertaining to who may apply for the Economic Injury Disaster Loans and how to apply.
New federal legislation and appropriations has opened up the possibility for small businesses to receive assistance for economic loss due to COVID-19.
Details of eligibility and administration of this assistance from the Small Business Administration (SBA) are still being addressed by the SBA. However, some information from the traditional SBA Economic Injury Disaster Loan (EIDL) program will still apply for COVID-19.
- If a small business has suffered substantial economic injury as a result of COVID-19, it may be eligible for financial assistance from the U.S. Small Business Administration.
- U.S. Small Business Administration is allowing businesses to forecast economic losses due to events that bring in high revenues being canceled due to the COVID-19.
- Small businesses and small agricultural cooperatives that have suffered substantial economic injury may be eligible for the SBA's Economic Injury Disaster Loan (EIDL) Program.
- Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses.
- An EIDL can help meet necessary financial obligations that a business could have met had the disaster not occurred.
- It provides relief from economic injury caused directly by the disaster and permits the business to maintain a reasonable working capital position during the period affected by the disaster.
- The SBA provides EIDL assistance only to those businesses that SBA determines are unable to obtain credit elsewhere.
- The loan amount will be based on the business’ actual economic injury and financial needs.
- The interest rate on EIDLs cannot exceed 4 percent per year.
- The term of the loans cannot exceed 30 years.
- Terms and conditions will be determined by the business’ ability to repay the loan.
How to begin the process: The Estimated Adverse Economic Impact Section of the attached Economic Injury Worksheet needs to be fully completed, with all questions answered regarding business revenues, whether there was any business interruption insurance, as well as the comments section. The comments section, “Please provide a brief explanation of what adverse economic effects the disaster had on your business:” must indicate that the economic impacts are a direct result of COVID-19.
If your business has suffered substantial economic injury as a result of COVID-19, forecasts economic losses due to events that bring in high revenues being cancelled due to COVID-19, please complete the attached Economic Injury Worksheet and return to Dustin.Ivers@sdcounty.ca.gov
If you have any questions, please email Dustin Ivers at the email above. This is not a loan application but only a means for the SBA to assess if businesses within San Diego County qualify.