On Saturday, March, 21, 2020, Iowa was officially designated as a declared disaster area as a result of the current Coronavirus crisis. Now that Iowa has received the designation, small businesses who meet SBA income or employee limits (whether such business are formed as sole proprietors, limited liability companies, corporations, partnerships, trusts, etc.), agricultural cooperatives or private non-profit companies may utilize these loans in order to survive until normal operations resume following a declared disaster.
SBA disaster loans may be used for operating capital to cover supply expenses, payroll, rent, etc. Loans can be up to $2 Million dollars, with interest at 3.75%, for small businesses, and 2.75% for non-profits, 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.
The SBA Disaster Loan application includes the requirement of providing financial information and disclosures of the business, principals who own 20% or more of the entity, and tax returns. More information regarding the SBA Disaster Loan program, including the online application, can be found at the disasterloan.sba.gov website. If you have questions, or would like assistance with filing your application, feel free to contact the author.