Export Delaware is working with the SBA to help Delaware small businesses through COVID-19. Export Delaware and the SBA District office in Wilmington, Delaware urges small businesses who have been affected by this pandemic to apply for an SBA Economic Injury Disaster Loan. The applications are good for six months, and you don’t need to accept the loan now. The idea is to have your paperwork completed and your approval secured so the funds are available to you should you need them.
Below you will find links to presentations to guide you through the process.
Economic Injury Disaster Loan – The Basics
- Eligible entities may qualify for loans up to $2 million.
- Interest Rates are fixed for the life of the loan. Rates are 3.75% for small businesses and 2.75% for non-profit organizations
- Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.
How can I use the loan funds?
- These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion.
What are the collateral requirements?
- Economic Injury Disaster Loans over $25,000 require collateral.
- SBA takes real estate as collateral when it is available.
- SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available.
Basic Filing Requirements
- Completed SBA loan application (SBA Form 5).
- Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates.
- Complete copies of the most recent Federal Income Tax Return.
- Schedule of Liabilities (SBA Form 2202).
- Personal Financial Statement (SBA Form 413).
- Other Information may also be requested.
*Although a paper application and forms are acceptable, filing electronically is easier, faster and more accurate.
Other information that may be requested:
- ·Complete copy, including all schedules, of the most recent Federal income tax return for principals, general partners or managing members, and affiliates (see filing requirements for more information).
- If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year.
- A current year-to-date profit-and-loss statement.
- Additional Filing Requirements (SBA Form 1368) providing monthly sales figures. (This is especially important for Economic Injury Disaster).
Please contact Michael Rossi, our District International Trade Officer at the SBA in Wilmington for any questions you may have. Mike’s details are below:
Michael A. Rossi
Lender Relations Specialist
District International Trade Officer
Delaware District Office
U.S. Small Business Administration
302-573-6294 ext 7
Click the links below to find helpful presentations on options for Small Businesses affected by COVID-10 and application instructions for an Economic Injury Disaster Loan.