SBA Disaster Loan : Approval Process, Requirements, and Application
- January 22, 2021
- Written by : Elizabeth Beall
After disaster struck in 2020, with hundreds of foreclosures, layoffs, and businesses shutting down, business owners are learning to prepare, and to be proactive, rather than reactive.
This means businesses are turning to SBA Disaster Loans for help.
What is an SBA Disaster Loan?
An SBA Disaster Loan is any physical or economical disaster that can be covered with some additional capital that is covered by the SBA Disaster Loan program. This loan can be used to replace inventory and other business assets, repair property or machinery, and more.
How long does SBA disaster loan approval take?
Our team does our best to provide approval as soon as possible, however, there is a mandatory disaster loan process for lenders and the Small Business Administration follow:
- Apply for the loan
- Verify property, review credit, and process loan for final decision
- Close loan and disburse funds
Time varies based on the ability to have each part of the process completed in a timely manner. Most of the time, funding will be provided within one month, sometimes dripping into the next on rare occasions.
Remember also, as a business owner, it is wise to have all documentation ready, the application complete, and a financial plan in place to speed up the loan approval process.
How to fill out an SBA disaster loan application?
You will first be presented with options regarding how many employees your business currently has. Next, a checklist of legal eligibility requirements is shown with options such as the applicant is not engaged in any illegal activity as defined by Federal guidelines and the applicant is not in the business of lobbying. This is used as a filtering process to determine whether or not you are eligible to apply.
After completing the above questionnaire and having determined that you are eligible, the first step in completing your application is to fill out your business information: business legal name, gross revenue, cost of goods sold, etc.
Followed by this will be a page to fill out business owners’ information, and then a page with additional information expectations. Once complete, you will be provided with a summary to review; submit once you are comfortable with all answers.
FAQ about SBA Disaster Loans:
Is it difficult to apply?
Luckily, a disaster loan application takes 3 minutes or less when applying through us at REIL Capital. Weâ€™ve streamlined the process and are able to provide you with a quick, online application.
Visit us to apply for our SBA disaster loan within minutes.
Where can I get a free consultation for this loan?
Our team at REIL Capital is ready to help you in any way we can, whether thatâ€™s helping you find your best-fit loan or guiding you through a financial planning process. If youâ€™d like a free consultation for loans, give us a call.
How much can I expect to be given?
As our experts here have found, SBA Economic Injury Disaster Loans provide small businesses with working capital loans of up to $2 million. Which can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. $10 billion has been provided by the government to make EIDL loans.
The amount one will receive is dependent upon one’s qualifications and current standing and therefore differs between businesses and industries. If youâ€™d like to learn more about your potential funding, chat with one of our experts here at REIL Capital.
What are a few of the SBA loan requirements?
Your enterprise should be a for-profit business from an eligible industry based in the USA; have a minimum of $100,000 in annual revenue and maintain a 145+ business score; and have a personal credit score of 680 or above.
We put together a list of additional documents if youâ€™d like to see more eligibility requirements for loans, such as business bank statements, tax returns, balance sheets, and others.
Keep in mind that these requirements do not guarantee acceptance for an SBA Loan. Look ahead to the next question, or reach out to one of our specialists to help you decide which program you may qualify for.
How can I increase my chances of getting approval for an SBA Loan?
We try our best to accept your business and qualifications. Unlike some others, like banks for example, weâ€™ve made the requirements less extreme.
If youâ€™d like to improve your chances though, try these three tips:
- Come in with a financial plan
- Consider a short term payment option
- Provide collateral
Easy enough? Apply for your SBA Disaster Loan today.
We hope things are clearer for you now when it comes to SBA Disaster Loansâ€¦ maybe a bit less of a disaster?
If you have any further questions, weâ€™re here to help. Donâ€™t hesitate to reach out.