COVID-19

Need to apply for a small business disaster loan? Do it quick

Federal program offers $10,000 no-repay emergency advance

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If your small business or nonprofit has taken a direct hit from the COVID-19 pandemic, you may be eligible for an Economic Injury Disaster Loan from the U.S. Small Business Administration. But you should apply quickly. The loans will be handed out on a first come, first serve basis. 

When you apply for an EIDL, you can also request an emergency advance of $10,000, which will be disbursed within three business days of approval and does not need to be repaid under any circumstances.

According to a statement issued Saturday (April 4) by Alicia Keyes, cabinet secretary of the state Economic Development Department : "SBA told us yesterday during a webinar that you have until June 30, 2020 to access this money but it is on a first come, first serve basis. This money will go quickly and we need to do everything we can to get it to you all."

Keyes encouraged local businesses to apply for  Economic Injury Disaster Loans and the Paycheck Protections Program. "The first is a loan program (loans up to $2M) with a forgivable advance up to $10,000 that can be distributed in 3 days directly to your company; and the second, a larger loan program (up to $10M) has an interest rate of 1% and is deferrable for 6 months."

Companies can apply through the SBA at: https://disasterloan.sba.gov/ela/

"The advance may be used to keep employees on payroll; pay for sick leave; meet increased production costs caused by supply-chain disruptions; or pay debts, rent, mortgage or other business obligations," according to Keyes. 

The Coronavirus Aid, Relief and Economic Security (CARES) Act has expanded eligibility for SBA disaster loans to include:

• Business entities with 500 or fewer employees;

• Sole proprietorships, with or without employees;

• Independent contractors;

• Cooperatives and employee-owned businesses;

• Tribal small businesses;

• Private nonprofits of any size. You can apply for a loan online free of charge at sba.gov/.

According to Julianna Martinez-Barbee, director of the New Mexico Small Business Development Centers, the SBDCs located throughout the state can assist you with the federal loan application process. They can also provide information and guidance on all the other resources available to help you survive the COVID-19 crisis.

For assistance with the application and access to other resources, visit nmsbdc.org.

"We understand that this is a stressful time and that small businesses are experiencing unexpected consequences as a result of the coronavirus outbreak," said Martinez-Barbee. "Our statewide New Mexico SBDCs are ready to assist any business affected by COVID-19."

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