Updated March 26, 2020
Congress has approved $350 billion in emergency loans for small businesses to help them keep people employed. And, if small businesses maintain or later restore their payrolls, they may not have to repay some — or possibly any — of the loan. Here’s a guide and checklist from the U.S. Chamber of Commerce to help your small business through the process.
Economic Injury Disaster Loan
All small business in San Luis Obispo County are now in a declared disaster area. If your business has suffered substantial economic injury you may be eligible for an EIDL. You can start your application here.
Completing the SBA Economic Injury Disaster Loan online will take some time and preparation. Below are key tips from the Cal Poly CIE Small Business Development Center:
- Review the pdf version of the SBA Form 5 for Businesses and SBA Form 5C for Sole Proprietors. You want to insure you have all the necessary information handy before filing online.
- In section one of the form you will want to select the Economic Injury.
- Your TAX ID is your Federal EIN.
- Section 22 is not on the pdf form, but you will see it online. This section is an area where you can add a narrative. Have that ready.
- You will need your 2018 Tax Returns.
- The sooner you submit the application queue the better; over 800,000 applications have already been submitted.
- 50% of applications have been rejected due to FICO scores of 660 or less, you can obtain your credit scores from your bank, twice a year at no charge.
- The online application is slow to load because of the number of businesses completing the application. Businesses are seeing better load times between 7am-7pm.
- Profit and Loss Statements are not needed.
If you need help or have questions regarding the form, the Cal Poly CIE Small Business Development Center has consultants standing by to help.
Unemployment Insurance Work Sharing Program
Employers can apply for the Unemployment Insurance Work Sharing Program if reduced production, services, or other conditions cause them to seek an alternative to layoffs. The Work Sharing Program helps employees whose hours and wages have been reduced:
- Receive UI benefits.
- Keep their current job.
- Avoid financial hardships.
The Work Sharing Program helps employers:
- Minimize or eliminate the need for layoffs.
- Keep trained employees and quickly prepare when business conditions improve.
- Avoid the cost of recruiting, hiring, and training new employees.
See requirements here.
SBA Disaster Assistance Program
The SBA provides low-interest disaster loans to help businesses and homeowners recover from declared disasters. Applicants will need to complete the forms below and sign where required. Scan the completed forms as a pdf to be uploaded onto the online application.
- Business Loan Application (SBA Form 5) completed and signed by business applicant.
- IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
- Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
- Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
- Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).
Additional information that may be necessary to process your application:
- Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
- 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 is acceptable.
- A current year-to-date profit and loss statement.
- Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.
Please reach out if you know of an additional resource you think should be on this list or if there is anything the SLO Chamber team can do to be of service to you.