Toledo Regional Chamber of Commerce | Toledo, OH

  • Benefits & Services
    • Employee Health Insurance
    • Cost Saving Benefits
    • Marketing Opportunities
    • Member Portal
    • Newsroom
    • Newsletter Archives
  • Talent & Workforce
    • Talent Attraction
    • Expand Your Talent Pool
    • Industry Sector Partnerships
    • Job Board
  • Starting/Growing Your Business
    • Small Business Development Center
    • The Ramp
    • Export Assistance Network
    • Export Success
    • Toledo Area Small Business Association
    • Learning Center
    • Business Development Resources
  • Your Government Relations
    • Public Policy Agenda
    • Endorsements & Voter Resources
    • Institute for Leadership & Advocacy >
      • Institute for Leadership and Advocacy 2023
    • Supporting Veterans & Families
  • Developing Young Professionals
    • EPIC Toledo
    • Summer in the City
  • Upcoming & Recent Events
    • Upcoming Events
    • Recent Events
    • Community Calendar
    • Clambake
  • Your Chamber
    • Become a Member
    • Membership Directory
    • Minority, Women and Disadvantaged Business Enterprise Directory >
      • MWDBE Directory Submission Form
    • About the Chamber
    • Blog
    • Board
    • Staff
    • Contact Us
  • Toledo Region
  • Benefits & Services
    • Employee Health Insurance
    • Cost Saving Benefits
    • Marketing Opportunities
    • Member Portal
    • Newsroom
    • Newsletter Archives
  • Talent & Workforce
    • Talent Attraction
    • Expand Your Talent Pool
    • Industry Sector Partnerships
    • Job Board
  • Starting/Growing Your Business
    • Small Business Development Center
    • The Ramp
    • Export Assistance Network
    • Export Success
    • Toledo Area Small Business Association
    • Learning Center
    • Business Development Resources
  • Your Government Relations
    • Public Policy Agenda
    • Endorsements & Voter Resources
    • Institute for Leadership & Advocacy >
      • Institute for Leadership and Advocacy 2023
    • Supporting Veterans & Families
  • Developing Young Professionals
    • EPIC Toledo
    • Summer in the City
  • Upcoming & Recent Events
    • Upcoming Events
    • Recent Events
    • Community Calendar
    • Clambake
  • Your Chamber
    • Become a Member
    • Membership Directory
    • Minority, Women and Disadvantaged Business Enterprise Directory >
      • MWDBE Directory Submission Form
    • About the Chamber
    • Blog
    • Board
    • Staff
    • Contact Us
  • Toledo Region

We believe in sharing your stories.

SBA Economic Injury Disaster Loan Process

3/17/2020

6 Comments

 
Picture
The Ohio Development Services Agency is working this week to qualify Ohio for the U.S. Small Business Administration's (SBA) Economic Injury Disaster Loan Program. This program provides low-interest loans up to $2 million in order to help businesses overcome the temporary loss of revenue during the state of emergency. Non-profit organizations in Ohio will also be eligible for low-interest loans through the SBA's Economic Injury Disaster Loan program
Criteria for Loan Approval:
  • Credit History – Applicants must have a credit history acceptable to SBA.
  • Repayment – SBA must determine that the applicant business has the ability to repay the SBA loan.
  • Eligibility – The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.

The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years.

The Small Business Development Center at the Toledo Regional Chamber of Commerce can assist business owners with the application process, however, the SBA will not accept applications until the Disaster Declaration has been approved. At this time, all business owners who want to apply for these loans should begin pulling together information as outlined below.

All applications will can be started online by going to https://www.sba.gov/disaster-assistance/coronavirus-covid-19 after the declaration has been made for your county.

To expedite the process for your online application, The SBDC recommends you download all the forms, and prefill them out so you will be ready to complete the online applications properly and effectively.

For sole proprietor: https://disasterloan.sba.gov/ela/Documents/Disaster%20Home%20Loan%20Application%20(SBA%20Form%205c).aspx

For LLC, corporation, not for profit and limited partnership: https://www.sba.gov/document/sba-form-5-disaster-business-loan-application.  LLC filings must provide an operating agreement which identifies the managing partner.  If this is a single-member LLC then the owner is automatically the managing partner.

• Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates. https://www.irs.gov/pub/irs-pdf/f4506t.pdf.  This allows SBA to obtain tax records from the IRS.
• Complete copies of the most recent federal income tax return.
• Schedule of Liabilities (SBA Form 2202). https://www.sba.gov/sites/default/files/2019-09/2202%20Schedule%20of%20Liabilities.pdf.  This must include all short-term  and long-term liabilities.
• Personal Financial Statement (SBA Form 413). https://www.sba.gov/sites/default/files/2019-09/Form%20413.pdf. This form must be provided by all partners.
 
Other Information may also be requested:  Complete copy, including all schedules, of the most recent federal income tax return for principals, general partners or managing member, and affiliates (see filing requirements for more information).

• If the most recent federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year.
• A current year-to-date profit and loss statement.
• Additional Filing Requirements (SBA Form 1368) providing monthly sales figures. This is especially important for Economic Injury Disaster Loans.
https://www.sba.gov/sites/default/files/serv_da_all_loanapp_5_0.pdf
​

This must be accompanied by at least a six-month financial projection or revenue document. 
*Although a paper application and forms are acceptable, filing electronically is easier, faster and more accurate.

Recheck the filing requirements to ensure that all the needed information is submitted. The biggest reason for delays in processing is due to missing information. Make sure to complete all filing requirements before submitting the application and forms. If more funds are needed, applicants can submit supporting documents and a request for an increase. If less funds are needed, applicants can request a reduction in the loan amount. If the loan request is denied, the applicant will be given up to six months in which to provide new information and submit a written request for reconsideration.
 
Other options to consider:
Ask for deferred payments to banks and creditors: Businesses should ask for a payment deferral (interest only or otherwise) before applying for additional credit (if possible).  Banks have the ability to defer SBA guaranteed loans under their unilateral authority.  The decision to defer is ultimately up to the bank.  Any business, especially those with notes, should have a conversation with their banker.  The structure of the deferment (interest only or full deferment) is up to the bank.  The payment history/status of commercial notes are not normally reported to the credit reporting agencies and most don’t unless there’s a default.

As always, proactive communication from both parties provides for better overall outcomes.
Make significant changes to your operations.  Monitor all expenditures and try to encourage receivable collections when possible. 
​
All business owners need to remember the basic premise of business: CASH IS KING.  Cash will be needed to allow the business to rebound when conditions stabilize.
 
The Ohio Small Business Development Center (SBDC) Program is funded in part through a cooperative agreement with the U.S. Small Business Administration. The SBDC program is also funded in part by the Ohio Development Services Agency.  All services are extended to the public on a non-discriminatory basis. Language assistance services are available for limited English proficient individuals. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance.  Call 419-243-8191 or visit www.sbdc.development.ohio.gov for more information.
Picture
6 Comments
Dorr Cafe inc dba Dorr Street Cafe Bob Reichert, Owner link
3/18/2020 12:41:34 pm

Tried to fill out form, but it looks like we need the ending date, amount lost, etc. We will not know until the end.

Reply
Bill Wersell link
3/20/2020 01:45:07 pm

We do not know the ending date but you should project out to 90 days.

Reply
Mike Knight
3/21/2020 05:55:18 pm

Has Ohio been declared a disaster zone yet

Reply
Bill Wersell
3/23/2020 02:28:15 pm

Yes the whole State of Ohio has been declared a Economic Disaster Area

Reply
Eli Richardson link
1/21/2021 11:53:15 am

It really helped when you said the criteria to get a loan approval is your credit history, repayment, and eligibility. A friend of mine is thinking about applying for SBA 8a since his family's business is suffering right now. But he's not sure about it because he's not familiar with the process and he's busy with work. That's why I think he should hire a professional to help him out. Plus, having a consultant that's already gone through it, it's a great advantage. Thanks for the information about what criteria does they consider to make you eligible.

Reply
clic aqui
11/29/2021 11:45:37 am

Y una vez recibido el dinero, lo que pagamos todos los meses son las cuotas de devolución del préstamo, y no la hipoteca. La hipoteca es la garantía que recibe de nosotros el banco y que se constituye con la escritura pública.
<a href="https://www.bb.com.mx/" rel="nofollow ugc"></a></p>

Reply

Your comment will be posted after it is approved.


Leave a Reply.

    Archives

    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016

    Categories

    All
    Advocacy And Public Policy
    Business Development
    Chamber Updates
    EPIC Toledo
    Events
    Membership Opportunity
    New Members
    Our Members
    Small Business Development Center
    Talent Resource Week

    RSS Feed

Copyright Toledo Regional Chamber of Commerce.  All Rights Reserved.
300 Madison Avenue, Ste. 200  |  Toledo, OH 43604
PHONE: (419) 243-8191 
Terms and Conditions
Picture