TRUE Tax & Accounting Update: SBA Economic Injury Disaster Loans On Friday, March 20th, the SBA announced that Economic Injury Disaster Loans are NOW available to Wisconsin businesses.
On Saturday, March 21st they hosted two webinars to discuss the program. The following summarizes the information presented.
Wisconsin small businesses and non-profits are now eligible to apply for: · Loans up to $2 million (the first $25,000 can be obtained with no collateral) · These loans can provide working capital to meet a business’ ongoing expenses including payroll, accounts payable, and fixed debt payments until the situation improves · Interest rates are 3.75% for small businesses and 2.75% for non-profits · Loan repayment is deferred for 12 months although interest accrues during this time · Repayment can be as long as 30 years · There is no cost to apply, and there is no obligation to take the loan if one is offered · The process from application to funding is likely to take 3-4 weeks, so apply soon! How do you apply? Apply online at SBA.gov/disaster What should you have ready/what forms are required? · SBA Form 5 (or 5C for sole proprietorships) · Tax Information Authorization (IRS Form 4506T) for the business, the business owners, and affiliates · Copies of the most recent tax returns filed (2018 is acceptable) · Schedule of Liabilities (SBA Form 2202) · Personal Financial Statement (SBA Form 413) All of the forms referenced above are available on the SBA website. We are happy to assist you with this process. If you intend to apply for this loan, let us know!