SBA disaster loan by Money Man 4 Business in Houston, get eidl relief assistance to apply with reconsideration application for SBA emergency loans for your small business effected by disaster.

Due to the outbreak of many hazardous situations like earthquakes, flood, pandemic or more such like, the small businesses are seeking financial help, and their best hope is the loan from SBA disaster loans. The low-interest long-term SBA disaster loan is a viable option for small businesses suffering from the economic downturn or the business that wishes to grow but cannot secure loans from non-government finances.

SBA emergency loans are working capital loans available to small businesses and most private non-profit organizations. Currently, all small businesses in all U.S. states and territories are currently eligible for small loans with low interest due to the pandemic.

However, to do so, the governor of the state has to declare that the state is an economic emergency and also the country where the business is headquartered declares economic emergency so that the business is entitled to apply for the loan. While most of the businesses are eligible to apply for the SBA disaster assistance, some businesses like the marijuana shops, casinos, racetrack, etc. are not eligible for such loans.

In the month of March’20, the U.S. Federal Reserve signed the Corona Virus Aid Relief and Economic Security (CARES) act, which is a big corona virus relief bill, the sole purpose of which is to support the small business during this uncertain time due to the pandemic. One of the actions in the bill is the Paycheck protection program. 

The program has been originated from the CARES act, which was initially set up to provide SBA disaster assistance to American small businesses with eight weeks of cash-flow. In this program, small businesses are eligible, with the loan having a maturity rate of two years at an interest of one percent. There is no security or personal guarantee required against the loan; also, a loan can be forgiven and basically turn into a non-taxable grant.

These program loans are more extensive than the SBA disaster loan assistance; even small businesses having sole proprietorship, self-employed individual, and freelance workers are eligible for the loans through this program. But there are conditions; at least sixty percent of the loan needs to be used for payroll and employee benefits.

The balance forty percent needs to be used to mortgage interest, rent, lease, and utility payment. The loan is not directly paid by the SBA, but they back the lenders. The purpose of the program is to protect the paychecks of the employee.

How to get SBA disaster loan assistance?

In recent years, the USA’s small business has suffered a number of major disasters like wildfire, earthquakes, hurricanes, flooding, and droughts. But the major crisis has been the Covid 19 pandemic. As a small business or a startup, if you seek relief, your business might be eligible for the SBA disaster loans in Texas. They will provide you a low-cost business loan that will help you rebuild your business keep you in operation.

The SBA disaster loan has a low fixed interest rate and generally carries fixed, low monthly repayment. It has a fixed interest rate for the entire loan life, and the formula is set as per the law, and it may depend upon the type of disaster and the market condition. For instance, the interest rate due to the pandemic Covid 19 for-profit business is fixed at 3.75%, and for non-profit business, it is fixed at 2.75%.

For small business disaster loans, both physical and economic disaster loans are available in the disaster area. To avail of this loan, the business must be a small business which is located within the declared disaster area. A business that is owned independently and doesn’t dominate its operation is deemed a small business. But the business which racks their one-third revenue through legal gambling activities like casinos and racetracks is not considered eligible for such loans.

The SBA disaster loan assistance can be used to replace or repair the damaged property owned by the business, which might include the real estate, supplies, machinery, inventories, etc. They can also be used as the capital that is designed to meet the financial obligation for the business.