Help for Small Businesses Affected by COVID-19

The U.S. Small Business Administration (SBA) recently granted Texas’ Economic Injury Disaster Loan (EIDL) assistance declaration, making loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19).

Small businesses who believe they may be eligible for an SBA EIDL, should visit the SBA’s website where they can directly apply for assistance. The online application is the fastest method to receive a decision about loan eligibility. In order to qualify, businesses will need to assemble the following documents:

(a) Corporate governance documents (Articles of Incorporation, Articles of Organization (for LLC), or Registration of Sole Proprietorship;

(b) a Written statement justifying the nature and scope of economic injury and how/why nature of business was adversely impacted by the Coronavirus (one page/no more than two), such as loss of revenues, cancelled contracts, interrupted supply chain, etc., that resulted in economic injury;

(c) Current Accounts Payable and Accounts Receivable Aging as of date of filing for the loan;

(d) Three (3) years’ 1040 Federal Income Tax Returns for the business & owners;

(e) Three (3) years’ company FYE Income Statement and Balance Sheet and latest YTD Financial Statements (Company prepared is acceptable);

(f) Company and Owners’ Debt Schedule Tables [e.g., Lender, original loan amt., date, current balance, interest rate, collateral, purpose of loan, guarantors, status (e.g., current or past due with explanation) per row in table];

(g) Monthly two (2) years’ cash flow projections;

(h) Three (3) years’ Monthly Sales History up to date of filing for loan;

(i) Current copies of owners’ credit reports from the three (3) credit bureaus with explanations for any negative reports; and

(j) Required SBA Forms, including IRS Form 4506-T, Personal Financial Statement (SBA Form 413), Schedule of Liabilities & Fixed Assets (SBA Form 2202), Monthly Sales (SBA Form 1368), Home Loan (SBA Form 5c), if applicable.

Please share this information with any and all small business owners!

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