The COVID-19 pandemic has forced many small businesses in New York City to close or reduce their operations, leaving them in dire financial conditions. To help businesses stay afloat and recover from the economic hardship caused by the epidemic, the U.S. Small Business Administration (SBA) has developed an Economic Injury Disaster Loan (EIDL) program. Everything you need to know about Economic Injury Disaster Loans in NYC, including their definition, operation, and application procedures will be covered in this article.
What are Economic Injury Disaster Loans?
Economic Injury Disaster Loans are low-interest loans of up to $2 million offered by the SBA to help small businesses and non-profit organizations in disaster-impacted areas recover from economic losses caused by a disaster. COVID-19 has been designated as a qualifying disaster. The economic injury disaster loan NYC can be used to pay fixed debts, payroll, accounts payable and other expenses that could have been met had the disaster not occurred.
How EIDLs Work
EIDLs are designed to provide working capital to businesses that have incurred a loss due to the disaster. The loans have a 3.75% interest rate for businesses without credit available elsewhere and 2.75% for non-profit organizations. The term ranges between 30 years depending on each borrower’s ability to repay. Borrowers may receive an advance of up to $10,000 within three days of application, which is not required to be repaid even if the loan application is denied.
Eligibility Requirements
To become eligible for an economic injury disaster loan NYC, small businesses or non-profit organizations must prove their economic injury and be located in a disaster-declared area. As mentioned before, COVID-19 has been designated as a qualifying disaster.
In addition to disaster location requirements, the following criteria must also be met:
- The business must have suffered economic injury as a result of the declared disaster
- The business must have no credit available elsewhere
- The business must be physically located in the disaster area
- The business must have no proven ability to obtain credit at reasonable terms to finance business needs
- The business must meet SBA size standards
While these are the standard eligibility requirements, businesses should check with their local SBA office for specific eligibility criteria in their area.
How to Apply for an EIDL in NYC
Business owners in NYC can apply for small business loans NY & EIDL directly through the SBA website. The application is free, quick, and straightforward and all documentation can be uploaded electronically. Business owners can also receive assistance with the application process by contacting their local SBA Office.
To apply, follow these steps:
- Visit the SBA EIDL website and click on “Apply Online.”
- Create an account using your email address.
- Fill out the Economic Injury Disaster Loan application by providing the required information about your business, including financial information and tax returns.
- Upload all required documentation, including a tax information authorization form (IRS Form 4506-T) requesting a transcript of tax returns.
- Submit the application.
Once the application is processed, a loan officer will contact the applicant to discuss the next steps.
Small businesses like business loans Dr and non-profit organizations in NYC that are battling to recover from financial losses brought on by the COVID-19 pandemic may find that Economic Injury Disaster Loans are their only hope. With a low-interest rate and favorable terms, these small business loans TX provide working capital to cover expenses, payroll, and other costs. Don’t wait to apply if you think your company qualifies for the EIDL program. By doing so, you will be able to help your company endure the financial effects of the epidemic.
You can get in touch with us at Sky Small Business Loans 75-25 141st Pl #757, Flushing, NY 11367, United States +16468851333 https://skybusinessloans.com/queens-ny-branch/
