03/23/2020: Small Business Relief in Response to the Coronavirus
Amidst the ever-changing day-to-day surrounding the coronavirus, thousands of U.S. businesses have been negatively impacted. We’ve received several questions from customers regarding relief efforts being offered to small business owners, so we’d like to share some information from the U.S. Small Business Administration (SBA).
SBA Disaster Assistance Loans
The U.S. Small Business Administration is now offering small business owners in Wisconsin low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
How can these loans help?
- SBA’s Economic Injury Disaster Loans (EIDL) offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
- These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for for-profit small businesses. The interest rate for non-profits is 2.75%.
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
For more information about Economic Injury Disaster Loans, visit this page.
Businesses will be asked to supply the following information as part of the application process:
- Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates.
- Complete copies of the most recent Federal Income Tax Return.
- Schedule of Liabilities (SBA Form 2202).
- Personal Financial Statement (SBA Form 413).
- Profit and loss statements
- Monthly sales figures (SBA Form 1368)
Click here to apply for a disaster recovery loan through the SBA.
We’re here for you.
If you have questions or concerns about your business and how it’s been impacted by the COVID-19 pandemic, we’re happy to answer them. Contact your Wolf River Community Bank lender to decide the best plan of action for your business.
Sources: U.S. Small Business Administration & Wisconsin Economic Development Corporation