Small businesses in Texas – including health care clinics and practices – can now apply for long-term, low-interest working capital loans to meet their financial obligations during the time of a disaster.
Gov. Greg Abbott recently announced that the U.S. Small Business Administration (SBA) has included Texas in its Economic Injury Disaster Declaration, giving qualifying small businesses in Texas access to the Economic Injury Disaster Loan (EIDL) program.
To qualify, businesses must have:
- An acceptable credit history,
- The ability to repay the loan, and
- Collateral for loans over $25,000. Note: SBA will not decline a loan for lack of collateral but will require the borrower to pledge collateral (e.g. real estate) that is available.
Small businesses can borrow up to $2 million for economic injury and/or physical damage and receive loan terms of up to 30 years.
Apply for assistance on the SBA’s website and submit the following documentation:
- Business Loan Application (SBA Form 5) completed and signed by business applicant.
- IRS Form 4506-T completed and signed by the applicant business; each principal owning 20% or more of the applicant business; each general partner or managing member; and any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
- Complete copies, including all schedules, of the most recent federal income tax returns for the applicant business, or an explanation if not available.
- Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, and each general partner or managing member.
- Schedule of Liabilities listing all fixed debts (SBA Form 2202) may be used).
SBA says additional information may be necessary to process your application. Approval decisions and disbursement of loan funds will depend on SBA’s receipt of your submitted documentation.
You also can apply in-person at a disaster center, or by mail.
For more information or to find a local disaster center, contact SBA’s Customer Service Center at (800) 659-2955.
You can find more information and resources to help keep your practice financially healthy, including more SBA resources, on the Texas Medical Association's Practice Viability webpage.
Remember, you can find the latest news, resources, and government guidance on the coronavirus outbreak by visiting TMA’s COVID-19 Resource Center regularly.
Last Updated On
April 01, 2020
Originally Published On
March 24, 2020