Governor Dunleavy submitted the disaster declaration for funding to the Small Business Administration (SBA). The Alaska SBDC urges small businesses interested in pursuing an SBA Disaster Loan to get prepared for the process by doing the following. An update with free video presentation was published on 3/20/20.
Be Ready: What will you need to apply?
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- Completed SBA loan application (SBA Form 5) (this is electronic/online in the portal)
- Completed and signed Tax Information Authorization (IRS Form 4506-T) for the applicant, principals, and affiliates; each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50 percent ownership in an affiliate business.
- Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management
- Schedule of Liabilities (SBA Form 2202) listing all fixed debts
- Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, and each general partner or managing member
- Income, balance sheet, and cash flow documents
- If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year
- A current year-to-date profit-and-loss statement
- Additional Filing Requirements (SBA Form 1368) providing monthly sales figures
The Alaska SBDC can assist you with preparing for the loan application, your financials, profit and loss documents, cash flow modeling scenarios, business planning, and other aspects of running and making decisions for your business during this time. Please email us if you have questions or need to meet with a business advisor.
What does this mean for Alaska?
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- Once Alaska is approved for disaster funding, the Apply for Assistance link will be activated for Alaskan businesses to apply for the Economic Injury Disaster Loan (EIDL). Please be prepared to check this site periodically. Sign up for our newsletter here for updates!
- Small businesses that submit complete loan packages could receive the loan within three (3) weeks if approved
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay
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Who is eligible?
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- Small businesses (500 employees and under) impacted by COVID-19
- Small businesses that offer services to the businesses impacted by COVID-19
- Based on the size of the business, the type of business, and financial resources
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Who is not eligible?
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- Religious and charitable organizations (a specific type of nonprofits), casinos/racetracks, agricultural enterprises, and businesses that fall under the cannabis industry.
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What do you need to get your loan approved?
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- Be eligible for the Economic Injury Disaster Loan
- The business is physically located in the state that has declared disaster
- Have a good credit history and a repayment plan for the loan
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How much can businesses apply for?
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- Eligible small businesses may qualify for up to a $2 million dollar loan
- Small business interest rates for this disaster are 3.75% with terms up to 30 years
- Nonprofit organization rates for this disaster are 2.75% with terms up to 30 years
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How can a business use this loan?
This loan can be used to pay payroll, accounts payable, and other bills (not debt) that could have been paid if the disaster had not occurred. The loan is not intended to replace lost sales, lost profit, or expansion. Funds cannot be used to pay down long-term debt. Learn more at the SBA COVID-19 information page.
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Mayor Berkowitz’s Emergency Order (March 16)
Alaska SBDC Message Regarding Novel Coronavirus (COVID-19) and Newsletter (March 13)
Alaska SBDC Support