Governor Abbott announced that the U.S. Small Business Administration (SBA) has now granted Texas’ Economic Injury Disaster Loan (EIDL) assistance declaration, making loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19).
Next Steps: Small businesses who believe they may be eligible for an SBA EIDL should visit the SBA’s website where they can directly apply for assistance. The online application is the fastest method to receive a decision about loan eligibility.
THOSE APPLYING WILL NEED TO REFERENCE THE SBA'S DECLARATION
NUMBER FOR THIS LOAN, WHICH IS TEXAS #16381.
Here are the five documents on the website you will need to complete:
1. IRS Form 4506-T
2. Personal Financial Statement (SBA Form 413)
3. Schedule of Liabilities & Fixed Assets (SBA Form 2202)
4. Monthly Sales (SBA Form 1368)
5. Home Loan (SBA Form 5c), if applicable
Below is the list of ten documents you should assemble and scan to prepare for uploading them into the EIDL website:
1. Corporate governance documents; e.g., Articles of Incorporation, Articles of Organization (for LLC), or Registration of Sole Proprietorship
2. A written narrative statement justifying the nature and scope of economic injury and how/why nature of the business was adversely impacted by the Coronavirus ( one page/no more than two), such loss of revenues, canceled contracts, interrupted supply chain, etc.
3. Current Accounts Payable and Accounts Receivable Aging as of the date of filing for the loan
4. Three (3) years’ 1040 Federal Income Tax Returns for the business & owners
5. Three (3) years’ company FYE Income Statement and Balance Sheet and the latest YTD Financial Statements (Company prepared)
6. Company and Owners’ Debt Schedule Tables [e.g., Lender, original loan amt., date, current balance, interest rate (F or V?), collateral, the purpose of the loan, guarantors, status (e.g., current or past due with explanation) per row in the table]
7. Monthly (reasonably detailed) two (2) years cash flow projections
8. Three (3) years’ Monthly Sales History up to date of filing for a loan
9. Current copies of owners’ credit reports from the three (3) credit bureaus with explanations for any negative reports
10. Required SBA Forms (of all Owners, Co-owners & Principals owning 20% or more of the small business): IRS Form 4506-T, Personal Financial Statement (only on SBA Form 413), Schedule of Liabilities and Fixed Assets (SBA Form 2202), Monthly Sales (SBA Form 1368), Home Loan (SBA Form 5c)
Federal and state government entities and nonprofits are working together to control the spread of the coronavirus and to support the businesses and individuals impacted by the virus and/or the protective measures being taken.
The Economic Injury Disaster Loan Program is an SBA program that works directly with state Governors to provide targeted, low-interest rate working capital loans of up to $2-million to small businesses and nonprofits.