Loans for Inyo County small businesses impacted by the coronavirus

Staff Writer

New federal legislation and appropriations have opened up the possibility for small businesses to receive assistance for economic loss due to COVID-19.
For Inyo County to become potentially eligible for Small Business Administration (SBA) Economic Injury Disaster Loans (EIDL), only one completed Economic Injury Worksheet for an impacted business needs to be submitted to CalOES.
Details of eligibility and administration of this assistance from the Small Business Administration (SBA) are still being addressed by the SBA. However, some information from the traditional SBA Economic Injury Disaster Loan (EIDL) program will still apply for COVID-19.
• If a small business has suffered substantial economic injury as a result of COVID-19, it may be eligible for financial assistance from the U.S. Small Business Administration.
• U.S. Small Business Administration is allowing businesses to forecast economic losses due to events that bring in high revenues being canceled due to the COVID–19.
• Small businesses and small agricultural cooperatives that have suffered substantial economic injury may be eligible for the SBA’s Economic Injury Disaster Loan (EIDL) Program.
• Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses.
• An EIDL can help meet necessary financial obligations that a business could have met had the disaster not occurred.
• It provides relief from economic injury caused directly by the disaster and permits the business to maintain a reasonable working capital position during the period affected by the disaster.
• The SBA provides EIDL assistance only to those businesses that SBA determines are unable to obtain credit elsewhere.
• The loan amount will be based on the business’ actual economic injury and financial needs.
• The interest rate on EIDLs cannot exceed 4 percent per year.
• The term of the loans cannot exceed 30 years.
• Terms and conditions will be determined by the business’ ability to repay the loan.

How to begin the process
The Estimated Disaster Economic Injury Worksheet for Businesses must be completed, paying special attention to the Estimated Adverse Economic Impact section of the form. All questions must be answered regarding business revenues and whether there was any business interruption insurance. In the comments section, provide a brief explanation of what adverse economic effects the disaster had on your business. The explanation must indicate that the economic impacts are a direct result of COVID-19.
If your business has suffered substantial economic injury as a result of COVID-19, or it forecasts economic losses due to events that bring in high revenues are being cancelled due to COVID-19, please complete the Estimated Economic Injury Worksheet and return it to kwilliams@inyocounty.us. Use the same email address to contact the Inyo County Office of Emergency Services if you need additional information..

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