• Lending or Investment Concerns (except for real estate investments held for rental)
• Speculative Activities
• Non-profit Organizations that are not considered a Private Non-Profit (local, county or state governments are not eligible
• Consumer and Marketing Cooperatives. However, other cooperatives and small agricultural cooperatives meeting applicable size standards are eligible
• Not a small business concern
• Gambling Concerns. Concerns that derive more than one-third of their annual gross revenue from legal gambling activities
• Casinos, Racetracks, etc. Businesses whose purpose for being is gambling (such as casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of their ability to meet the one-third criteria established for otherwise eligible concerns
• Loan packagers who derive more than one-third of their annual volume from the preparation of applications seeking financial assistance from SBA
• Religious Organizations
• Political or Lobbying Concerns
• Pawn shops, when 50 percent or more of previous year’s income was derived from interest
• Real Estate Developers. Establishments primarily engaged in subdividing real property into lots and developing it for resale on their own account
• Life Insurance Companies
• Concerns engaged in illegal activities (as defined by Federal guidelines)
• Government-owned concerns, except for businesses owned or controlled by a Native American tribe
• Concerns with Principals Incarcerated, on Parole or Probation: remain ineligible if the parole or probation is lifted solely because it is an impediment to obtaining a loan.
• Concerns engaged in live performances of, or the sale of products, services, of a prurient sexual nature
• Businesses considered as hobbies
• Concerns not located in the declared disaster area
• Concerns determined by SBA to have credit available elsewhere
• Concerns involved in change in ownership situations: Concerns which had a substantial change of ownership (more than 50 percent) after the impending economic injury became apparent, and no contract for sale existed prior to that time are ineligible
• Concerns established post-disaster: If a small concern was established after an impending economic injury became apparent, the owner assumed the risk and did not incur economic injury

It is a low interest federal loan issued by the SBA to small businesses or private non-profits that are experiencing economic injury and, in this case, injury caused by the Coronavirus (COVID-19). EIDLs become available once a county or state gets an Economic Injury Disaster Loan assistance declaration, also issued by the SBA.

More information can be found at https://disasterloan.sba.gov/ela/Information/EIDLLoans.

The SBA offers the Economic Injury Disaster Loans, not banks. Small businesses should apply for Economic Injury Disaster Loans at https://disasterloan.sba.gov/ela/.

Traditional SBA-backed loans are available as well. To find a SBA-approved lender, visit www.sba.gov/lendermatch.

These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.

Many factors go into qualifying for an EIDL. A primary one is that a small business has to show a loss effective January 31, 2020, to now and/or in the future, as compared to 2019 financials.

Yes. Pennsylvania has officially received a declaration, so applications are being accepted.

The SBA highly recommends using the online loan application, which can be found at https://disasterloan.sba.gov/ela/.

Small businesses will need the following:

• 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)

For those with limited web/online capabilities, paper forms can be found at https://disasterloan.sba.gov/ela/Information/PaperForms or we can provide a copy to you. You can also see all the questions that will be asked on the electronic loan application. If you look at SBA Form 5, page 3, you’ll see all of the filing requirements.

As much as possible, application submission and processing is being handled online/virtually. We will communicate regularly to help small businesses navigate this program. Businesses can also call 717-914-6579 for assistance.

The loan process can be found at the link below and turnaround time is approximately five (5) days for review. The receipt of funds once the loan is approved takes approximately three (3) weeks.

https://disasterloan.sba.gov/ela/Documents/Three_Step_Process_SBA_Disaster_Loans.pdf

Each qualifying small business can apply for a loan of up to $2M to assist with economic recovery. There is no state or territory limit.

The interest rate is 3.75% for small businesses and the interest rate for nonprofits is 2.75%.

This level is set by Congress. If Congress acts to adjust it, the SBA will do so per the action.

EIDL repayment is deferred for four (4) months. Further, SBA offers loans with long-term repayments to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

Small businesses should stay up to date with SBA’s ongoing assistance by following @SBAgov account on Twitter. Also, you can find local educational and counseling resources via www.sba.gov/localassistance.