The U.S. Small Business Administration (SBA) announced on March 12th that it will provide Disaster Loan assistance to small businesses impacted by Coronavirus (COVID-19).
Alexandria SBDC will assist Alexandria businesses with their application processes when those loans are made available. The Disaster Declaration for businesses in our area has not been made yet so we will not know the provisions until we see that official announcement.
Please keep in mind that these Economic Injury Disaster Loans (EIDLs) are to provide working capital for businesses who have suffered substantial economic injury as a result of COVID-19. That means that you will need to demonstrate economic losses, but we will not know the details or amount of loss threshold that you will have to demonstrate UNTIL we see the application package for that official declaration.
We are listing below records that are likely to be required for you to submit (among others) when you apply for a disaster loan. As said earlier, Alexandria SBDC will help you with that submission process when the time is right, but in the meantime, you will expedite that application process if you prepare now to provide the following information:
- Monthly sales history for the past two years
- Accurate year-end business financial statements (both Income and Balance Sheet)
- As time transpires, interim month-end statements may also be required
- You will need to show a downturn in sales from prior periods (details unknown at this time) – early application may be premature