SBA Disaster Loan Application Preparation
Provided by 1-800Accountant
- Product Details
- Low Interest
- Potentially Forgivable
- Up to $2M
Get a free consultation with 1-800Accountant to see if you qualify for the special loans that are now available.
1-800Accountant will prepare your small business loan application with the U.S. Small Business Administration. This loan application may lead to approval for a low-interest loan for small businesses and nonprofits that have been severely impacted by COVID-19. The preparation includes compiling and preparation of forms related to the SBA's Economic Injury Disaster Loan Program, which provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the loss of revenue. 1-800Accountant does not guarantee an outcome, as loan approval is determined by the SBA.
The recently passed $2.2T CARES Act includes a Disaster Loan Program that the Small Business Administration (SBA) will administer providing loans to impacted businesses.
1-800Accountant's team of accounting experts will help business owners navigate this complicated process. They will assist the business owner in qualifying for this and other loan programs, then handle the preparation and filing of the loan application with the Small Business Administration.
Basic Loan Qualifications:
Credit Worthiness: Businesses should have a decent credit history. If they don't have a credit history, the SBA loan officer can look at the client's history in paying utilities, rent, insurance, and so on for evidence that the business can repay its loans.
Collateral: No collateral is needed if the loan is under $25,000, but if business is hoping for an amount over $25,000, the business may get turned down, or offered less, if it doesn't offer some type of collateral.
Actual Economic Injury: The business needs to have had some revenue in the past. If the business never made any money, it will be hard pressed to tell the SBA that it is suffering an economic injury. The SBA may ask for monthly patterns of revenue; if it sees a drop in revenues due to COVID-19, that is good evidence. In the past, for other disaster loans such as hurricane loans, a good rule oof thumb was that a business should have a 50% drop in revenues during the disaster.
Tax Returns: The loan package pulls IRS personal transcripts from each of the business owners and the SBA will also ask for the business return if it was supposed to be filed. If the business has not filed its 2019 tax returns, 1-800Accountant can work with it to ensure it is in federal compliance to be granted an SBA loan.
Use Of Funds: The SBA loan funds can be used only for operating business expenses. They can't be used for expansion or personal expenses. Businesses that apply for a disaster loan can get an immediate advance of up to $10,000.
The application process is complex and time consuming and will confuse almost anyone. We will help you navigate the application process and understand the available loan, grant, and tax credits available. Rest easy knowing our accountants will do it all for you, preparing and filing your application.
We want you to receive a Disaster Loan quickly that can help to support your business through this difficult time. Having a professional complete this application is the best option for you and your business.
Included in our Tax Advisory, we will be providing clients advice, helping clients navigate, and answering questions regarding the stimulus and what grants, tax credits, and loan programs can go to clients who qualify.
To learn more or to set up a free phone consultation, visit Nolo's 1-800Accountant page