The U.S. Small Business Association (SBA) declared that six states would become eligible for the Economic Injury Disaster Loan (EIDL). The loan is available to those who reside in South Dakota, Texas, Nevada, Nebraska, Kansas, and Idaho. The loan becomes available after the Secretary of Agriculture declares a disaster. The Secretary of these states announced the drought on June 13th, 2022.
Which Disasters Qualify
Through the EIDL, the SBA provides low-interest, long-term loans to support:
- Businesses
- Non-profit organizations
- Renters
- Homeowners
The idea is designed to help businesses located in an area that has experienced the following disasters:
- Drought
- Flooding
- Wildfires
- Hurricanes
How To Apply
There are three steps to easily apply for EIDL loans:
- Check disaster declarations
- Apply for the disaster loan
- Check your status for monetary rewards
Businesses can easily apply online and receive further information. The deadline to apply for an economic disaster loan is February 13th, 2023.
Processing Loan Application
Due to an overwhelming number of applications, the SBA has halted processing. Senators decided to step in since SBA has not progressed in processing applications. The loans serve as an essential source of capital for businesses within the area. This has become even more problematic as business owners are unable to get credit from other lenders.
The original May 6th deadline for the initial requests was announced at the end of April. As applicants have not received the final say, senators have found it unacceptable. As the SBA has received criticism, the borrowers are still in need.
GMS' Support
In the aftermath of a disaster, rebuilding a business can be challenging. That’s when you need a reliable partner like GMS to help guide your business in the right direction. When it comes to changing legislation, GMS will always ensure your business remains compliant and that you are aware of available grants that would benefit your business. Contact GMS today!