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Division of Small Business

While Delaware awaits its Economic Injury Declaration, info to get you prepared to apply for a loan

Gov. John Carney formally requested an Economic Injury Declaration from the U.S. Small Business Administration on Monday. According to the Delaware SBA, approval should come in the next day or so.

In the meantime, you can prepare to apply, which will help to ensure you get assistance as quickly as possible.

A good first step is to start to gather or fill out the necessary documents.

  • Business Loan Application (SBA Form 5)
  • IRS Form 4506-T
  • Complete copy of most recent federal tax return
  • Personal Finance Statement (SBA Form 413) if business is a sole proprietorship
  • Schedule of Liabilities (SBA Form 2202)
  • Others that may be necessary:
    • Current year-to-date profit and loss statement
    • SBA Form 1368
    • If no tax return, year-end profit and loss and balance sheet for previous tax year

Click here for a three-step explanation of the loan application process.

The SBA offers up to $2 million in federal direct loans per business. The rates on the fixed loans are 3.75% for small businesses and 2.75% for non-profits. The term of the loan can be up to 30 years to keep monthly payments small. Businesses have the ability to increase their loan amounts, if needed, as well as pay the loan off early without a penalty.

Some other key points about the loan program, which were shared by the Delaware SBA.

  • Fill out the form estimating damage under the assumption that, while the current issues, may not last until the end of 2020, you will need assistance paying employees and bills over the next nine months
  • You apply, have the application reviewed and close entirely online
  • Though a business will not qualify for the loans if it has access to credit elsewhere, few of the businesses the SBA deals with would meet that criteria. If you think that may be your business, you can still apply. No denial letter is necessary from another institution.

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