SBA

SBA Economic Disaster Loan Program

The Small Business Administration just announced the SBA Economic Disaster Loan program to help businesses impacted by the COVID-19 crisis.  The funds for this program are intended to offset losses to working capital including:

  • Fixed monthly payments
  • Payroll
  • Accounts payable
  • Temporary losses

6-month projections are required to determine the total amount a business is eligible for.  Other details of the program include:

Loan Amount:                   Up To $2,000,000
Loan Term:                        30 Years
Loan Rate:                         2.75% for Non-profit / 501c
                                            3.75% for all other business entities
Loan Repayment:             12 month initial loan payment deferment
                                              -  Interest accrues from the date of disbursement
Loan type:                          Term loans only – No LOC’s
Loan Disbursement:          Loan funds can be disbursed at loan origination or according to a disbursement schedule

We highly suggest that HCU business members apply for the program, even if you don’t need the money now or anticipate needing the funds.  There are no application costs and you are under no obligation to take any funds, if you are approved.  During previous disasters, loan processing has taken 2-3 weeks and the SBA believes this round could take little longer, given the anticipated demand for this program.

For more information, and to apply for an SBA Economic Disaster Loan, visit www.sba.gov/disaster.  Should you have any questions or need assistance with documentation, call an HCU Commercial Loan Officer at 800.428.8472, we’re here to help.