Deadline looms for small businesses to seek working capital loans
The US Small Business Administration (SBA) is encouraging businesses in Puerto Rico to apply for working capital loans before the Dec. 29 deadline.
The disaster loan program is available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and private nonprofit organizations affected by the severe storms, flooding and landslides that occurred Feb. 4-6, 2022.
This disaster declaration covers the municipalities of Bayamón, Cataño, Corozal, Dorado, Guaynabo, Manatí, Morovis, San Juan, Toa Alta, Toa Baja, Vega Alta, and Vega Baja in Puerto Rico.
These federal Economic Injury Disaster Loans (EIDLs) are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage.
The loan amount can be up to $2 million with interest rates of 2.94% for small businesses and 1.875% for private nonprofit organizations, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources.
Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. These working capital loans may be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.
Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure website and should apply under SBA declaration #17382.
Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (for those who are deaf, hard of hearing, or have a speech disability, dial 7-1-1 to access telecommunications relay services), or by sending an email.
Loan applications can be downloaded from the SBA’s website. Completed applications should be mailed to: US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to return economic injury applications is Dec. 29, 2022.