At this time, Iowa has not yet been designated as a declared disaster area as a result of the current Coronavirus crisis. There are currently 25 states that have been declared disaster areas, and are eligible for these SBA disaster loans. The Iowa Governor’s office is working with local SBA officials in the SBA Disaster Office to provide the necessary proof of loss in order to gain the declaration. If/when Iowa receives the designation, small businesses (whether sole proprietors, limited liability companies, corporations, partnerships, trusts, etc.), agricultural cooperatives or non-profits may utilize these loans in order to survive until normal operations resume following a declared disaster.
Eligibility includes being a small business, as defined in the relevant SBA code sections, or a private non-profit. These loans may be used for operating capital to cover supply expenses, payroll, rent, etc. Loans can be up to $2 Million dollars, with interest not to exceed 4%, for businesses that do not have access to alternative credit. The amount of the loans will be based upon the amount of the economic injury suffered. Repayment can be up to 30 years, depending upon the businesses ability to repay. The SBA attempts to provide approvals to applicants within 2 weeks of submission of all required documentation.
More information regarding the SBA Disaster Loan program can be found at the disasterloan.sba.gov website, or by contacting the author.