SBA Disaster Loans. Apply Online

Bozo | Apr 3, 2020 | 1,375 posts since 2011

For DA readers who might be small business owners (including sole proprietors), you can now apply online for the Covid19 Disaster SBA loans. Eligible applicants include anyone who operates a small business, from Airbnb hosts to sandwich shops (i.e., just about everyone). The application is available online. Just click "SBA disaster loan" into your search engine. The SBA website link will direct you to the application form.

My wife and I own a condo we rent out. Our rentals have been effectively eliminated, so I applied. The form is relatively straight-forward and takes maybe an hour to fill out, maybe less. Once complete, you receive a confirmation number for your records.

If approved, you may receive up to a $10,000 advance. Details regarding loan forgiveness and requirements have been discussed in the popular financial press. That said, it costs nothing to apply.

Stay safe,

Regards,

Bozo

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Choice | Apr 3, 2020 | 937 posts since 2020

More personal liability?

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Bozo | Apr 7, 2020 | 1,375 posts since 2011

Herewith an update. I called the SBA information telephone number today to see if I could get an update on my "advance" application status. Although I had my confirmation number, the CSR (who answered on the second or third ring) advised she could not provide an update over the phone, but that I should receive an e-mail within ten business days from my application (last Thursday PM).

Observations: (1) Kudos to whoever is organizing the phone bank to field calls. The phone number on the SBA website for inquiries is obviously well-staffed and the staffers are knowledgeable. (2) The SBA website is quite clear that the Personal Payroll Protection advances (up to $10,000) are without recourse. They are, in effect, "free money", need not be repaid, and are grants, not loans. Loans pursuant to the PPP are, unlike the advance, just that, loans. They may be forgiven, subject to certain conditions.

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Choice | Apr 7, 2020 | 937 posts since 2020

Sounds great...your obligations are to do...

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lou | Apr 7, 2020 | 1,004 posts since 2010

This probably doesn't pertain to you, but if you applied for a Paycheck Protection loan, the $10,000 from the SBA Disaster loan will be deducted from the amount forgiven under the PPP loan.

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lou | Apr 7, 2020 | 1,004 posts since 2010

One correction to your post: the $10,000 free money is from the SBA Economic Disaster loan. The PPP loan is a different program. The amount forgiven for the PPP loan is equal to 8 weeks of payroll, rent and utilities.

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Choice | Apr 7, 2020 | 937 posts since 2020

Saw some SBA guarantees in action in the post 911 era...be careful the lender with the SBA guarantees has in effect a cost type contract with SBA that covers almost 100% of the lenders cost...including any enforcement cost, ie they have little incentive to negotiate if things go south. And all of that is in addition to the lender liens!

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