SBA Economic Injury Disaster Loan Program – UPDATE
Maui Quick Links:
- Maui Now’s Coronavirus Section, click here.
- Maui Now’s Running List of Closures, Cancellations, Postponed Items and Notices for Maui.
- Mayor Victorino’s Emergency Rules begin at 7:45 a.m. on Friday, March 20
UPDATE: 4:21 p.m. March 20, 2020
If you are a small business owner who is suffering financial losses due to the impact of COVID-19 you can now file for low-interest working capital loans of up to $2 million from the Small Business Administration (SBA).
The SBA today approved a certification request submitted by Gov. David Ige, clearing the way for Hawai‘i small businesses to participate in the SBA’s Economic Injury Disaster Loan Assistance Program. The loans can be used to pay fixed debts, payroll and other bills that can’t be paid because of a disaster’s impact.
Interest rates are 3.75 percent for small businesses without credit available elsewhere. The interest rate for non-profits is 2.75 percent. Terms are determined on a case by case basis, based upon borrower’s ability to repay.
Loan applicants are required to file the following documents:
- Loan application (SBA Form 5), completed and signed.
- Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant, each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management;
- Complete copies, including all schedules, of the most recently filed Federal income tax returns for the applicant business; an explanation if not available.
- Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, and each general partner or managing member.
- Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used) are required to file three SBA forms and one IRS form.
Note: Please hold off on contacting Dept. of Business, Economic Development & Tourism (DBEDT). Additional details will be posted soon so that you can contact SBA directly.
As previously announced SBA’s Office of Disaster Assistance is coordinating with the Hawaiʻi Governor’s Office to certify the state for Economic Injury Disaster Loan Assistance.
This was just the first phase to access working capital loans of up to $2 million to be used to pay fixed debts, payroll and other bills that can’t be paid because of the disaster’s impact.
SBA Economic Injury Disaster Loan program should become available in the next week to businesses that are being impacted by the COVID-19 Coronavirus. Businesses are advised that it is important to know how they can start preparing today.
Visit the following website link for details on preparation: https://invest.
While the Maui Economic Development Board is sharing the information on behalf of SBA and the Department of Business, Economic Development & Tourism, MEDB does not accept applications.
MEDB Office Closed for 15 Days
With the ongoing uncertainty surrounding COVID-19, MEDB has been closely monitoring CDC travel notices, US State advisories, and Hawaiʻi’s Department of Health announcements. MEDB is following the recommendation of the Governor and Mayor to work remotely for the next 15 days and it’s doors are closed as of Thursday, March 19.
All staff will be working remotely to ensure continuity of services and programs. The contact via email is [email protected] or leave a message via phone at (808) 875-2300 and a team member will respond.