SBA Economic Injury Disaster Loan (EIDL) Program
March 18, 2020
We take seriously our dual responsibilities to provide financial services to our clients while also providing a safe work environment for our employees. During the COVID-19 national health emergency, we will do our part by conducting all transactions through the drive-thru lanes at each of our locations. This change will continue as long as the acute health risk persists. As always and particularly during this time, we encourage our clients to contact their loan officer with any questions or concerns. We are here to serve you in the challenges that you are facing and will continue to strive to be a resource to you in the weeks ahead.
Below is an outline of responses that have been made to COVID-19 to this point from a federal and state level, along with links to information and forms of significance.
SBA Economic Injury Disaster Loans
The U.S. Small Business Administration is offering low-interest federal disaster loans to small businesses suffering substantial economic injury as a result of COVID-19.
As to the specifics of the SBA EIDL program:
- Loans are made directly from the SBA to the borrower.
- Borrower can make application by visiting https://disasterloan.sba.gov/ela/
- $2,000,000 maximum loan amount to help overcome a temporary loss of revenue with the actual loan amount limited to the economic injury determined by SBA.
- Can be used to pay loan payments, payroll, accounts payable, and other bills that can’t be paid due to COVID-19.
- Interest rate is fixed with a maximum rate of 4% and the term is 30 years.
- Applicants must demonstrate having had the ability to repay prior to the disaster.
When making application to SBA, the following documents are typically requested by SBA. Links are available to each SBA form by selecting the form name below. Additionally, SBA may request recent tax returns or financial statement for the business or the business owners.
SBA Form 413 (Complete for each owner of 20% or more)
IRS 4506-T (Complete for business and owners of 20% or more)
Finally, for assistance in navigating through this process, please call your loan officer or Matt Sidwell, our SBA lending specialist, at 918-272-3141, and we will be happy to help. While this is a direct loan from the SBA and not a bank loan, we understand the complexities of SBA loans and stand ready to help you through this process.
Other SBA Loan Programs
With the large-scale appropriation of funding through the Economic Injury Disaster Loan assistance program, eligible borrowers are encouraged to utilize the program’s funding along with the very favorable terms to assist in the hardships from a loss of revenues. First Bank of Owasso is active in all SBA loan programs including the 7(a), Express, and 504 programs and we are closely monitoring these programs for any developments that would provide further assistance for our clients. There is discussion of expanding or modifying the other SBA programs to further aid small businesses and as this information comes available, we will be prepared to discuss these options in detail as well.
We know that many of our clients have already been forced to lay off employees, and we are told that efforts at the state and federal level are being made to get assistance to those employees as soon as possible.
In response to COVID-19, the U.S. Department of Labor has announced new guidelines outlining flexibilities states have in administering their unemployment insurance programs to assist those affected by COVID-19. Employers and displaced employees can contact the Oklahoma Employment Security Commission at (800)-555-1554 or visit their website at https://www.ok.gov/oesc/ for further information as to eligibility for expedited unemployment benefits.
Our commitment to you
We understand this is an unprecedented and very fluid time. We want to stress our commitment to stand with you through this time and to provide all the resources available to us to help you navigate through the uncertainty and potential financial difficulty. Please reach out to discuss your situation by contacting your loan officer directly or by calling 918-272-5301 and asking for the Loan Department.