The United States Small Business Administration (SBA) officially declared the state of Illinois eligible for the disaster assistance loan program on March 18, 2020. The federal program was launched in order to provide financial assistance to qualifying small businesses that have seen the worst of the economic impact of Coronavirus.
The program was extended to small businesses in Illinois in anticipation of the Shelter In Place Order that went into effect at 5 PM on Saturday, March 21. While local restaurants, bars, and retail businesses were already experiencing a plummet in usual revenue from social distancing, the statewide Shelter In Place Order cemented a temporary but signficant loss of revenue for the foreseeable future.
The SBA Disaster Loans program offers up to $2 million in working capital at a 3.75% interest rate, and a repayment schedule of up to 30 years, though loan terms will differ on a case-by-case basis. Small businesses that have access to any capital or have credit available anywhere else are not eligible.
Many small businesses have been rushing to the SBA’s website to apply for a disaster loan online, and this may be problematic. First, likely due to an overwhelming increase in site traffic which its servers aren’t capable of supporting, the SBA’s website has been crashing. Second, while the application process may appear simple, it takes a long time and an understanding of more than just business finances for an SBA disaster loan to be a good business move. Even the finest businesspeople amongst the small businesses of Illinois may overlook or ignore, while in a hurry to receive the funds they need to keep their businesses alive, basic principles and formalities in the application process that would make a massive difference in the amount of capital they receive, and the terms in which they must pay back the loan.
Luckily, we are here to help and understand the hoops and ladders of dealing with federal agencies better than most. Questions? Call us. We will ensure that you get the information and help that you need, but on terms that ultimately benefit you and your small business the most!