SBA Disaster Loan Program FAQ
The U.S. Small Business Administration announced a program to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the COVID-19 situation. On March 20, 2020, the SBA approved Gov. David Ige’s request for a statewide Economic Injury Disaster Loan declaration, clearing the way for Hawai‘i small businesses to participate in the loan program.
FAQ Last Updated: March 20, 2020
What is DBEDT’s role in the SBA Economic Injury Disaster Loan Program?
DBEDT is a resource partner of SBA. We are providing the most up-to-date information about the program to Hawaii companies as we receive it from the SBA . The loan application process is done entirely through the SBA. They have a portal site specifically for this loan program: https://disasterloan.sba.gov/ela/
I submitted a worksheet, what does that mean?
Thank you for the submission. In order for this loan program to become active in Hawaii, the State needed to apply to the Federal government and demonstrate that Hawaii companies are experiencing economic injury. We have already been certified as a state, so please apply to the SBA as soon as possible via the portal site, https://disasterloan.sba.gov/ela/.
The worksheet is not a loan application. Do not complete the worksheet as they are no longer necessary and do not impact your eligibility for an SBA loan. The forms you will need to apply for an SBA disaster loan can be found on our website at: invest.hawaii.gov
When can I apply for the SBA Economic Injury Disaster Loan Program?
Immediately. Go to the portal site, https://disasterloan.sba.gov/ela/, and fill out your application.
What forms do I need to fill out, and where do I apply?
Please fill out the following forms listed below. It may be helpful to download these forms and take your time to complete them manually, then carefully input the information on-line *Although a paper application and forms are acceptable, filing electronically is easier, faster and more accurate.
- SBA Form 5 – Completed SBA Disaster Business Loan Application (sole-proprietors use SBA Form 5c)
- SBA Form 1368 – Additional Filing Requirement
- SBA Form 2202 – Schedule of Liabilities
- SBA Form 2202 Schedule of Liabilities Instructions. Follow examples 1 through 8 for requested information. You may use your own form if you prefer. Any format is acceptable as long as it includes the information included in the instructions.
- SBA Form 413 – Personal Financial Statement(principals/general partners w/ownership of 20% or more)
- IRS Form 4506T – Request for Transcript of Tax Return(Tax Information Authorization)for the applicant, principals/general partners w/ownership of 20% or more, and affiliates(50% or more ownership).Ensure the information matches exactly to the applicable TR. Otherwise, it may be rejected and delay the processing of the application.
- Profit-and-loss statement for the current year-to-date
- For loan requests under $25K, collateral is not required.
- For loan requests $500K and over:
- Federal Tax Returns for the business – Complete copy of the most recent return including all schedules, etc.
- Federal Tax Returns for the principals, general partners or managing member w/ ownership of 20% or more, and affiliates (50%or more ownership). 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.
I have questions about the SBA Economic Injury Disaster Loan Program.
Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing) or by sending an email to firstname.lastname@example.org.
I need funds now! Are there any other funds available?
Except for your personal bank, we are not aware of other sources for immediate funding. Please go to the SBA website and apply for an SBA disaster loan. SBA says that the average time for loan processing is three weeks.
Are nonprofits eligible for the SBA Economic Injury Disaster Loan Program?
Yes, nonprofits are eligible, unless they are a religious or philanthropic organization.
Who can help me with my SBA loan application?
Please contact the SBA Resource Partners Hawaii Small Business Development Center (SBDC) ( https://www.hisbdc.org/ ). You can check the status of your application at https://disasterloan.sba.gov/ela/. For other questions please call SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing) or email email@example.com.
What can we do while we wait for the SBA to respond?
SBA says that the average processing time for loan processing is three weeks.
What will the interest rate be for the SBA Economic Injury Disaster Loan?
The interest rate is 3.75 % for for-profit businesses and for nonprofits 2.75%.
How do I submit an application through the postal service?
Paper loan applications can be downloaded from www.sba.gov/disaster. Completed applications should be mailed to:
U.S. Small Business Administration
Processing and Disbursement Center’
14925 Kingsport Road
Fort Worth, TX 76155.
How do I stay up to date with the status of my SBA Economic Injury Disaster Loan application?
Please go to the SBA portal site, https://disasterloan.sba.gov/ela/.