Your beloved local business in Florida has just sustained significant damage from a powerful hurricane. The relentless winds and torrential rains battered your premises, flooding the interior and ruining essential equipment. Known for your warm hospitality and essential services, your establishment faces an uncertain future. With repair costs far exceeding your savings, you desperately need financial solutions to rebuild, reopen quickly, and ensure your business thrives after the storm.
Cornerstone Capital Advisors is here to help you navigate the disaster funding process, providing a crucial support system during this tumultuous time. Our team of experts understands your challenges and guides you through every step, from identifying the best financial options to completing your application. We specialize in securing SBA EIDL loans and other disaster relief funding, ensuring you have the resources needed to rebuild and thrive. With Cornerstone Capital Advisors by your side, you can focus on restoring your business while we handle the intricacies of the funding process.
Florida’s hurricane season has always been a significant concern for small businesses in the region. With the 2024 hurricane season projections indicating high activity, you must prepare to request financial help. Experts predict a higher-than-average number of storms, possibly leading to more instances of economic injury for local businesses.
Understanding SBA EIDL Loans
SBA EIDL loans provide financial relief to small businesses and nonprofit organizations that suffer substantial economic injury due to a declared disaster. Unlike other loans, SBA EIDL loans focus on helping businesses cover their operating expenses during a challenging period.
What Makes EIDL SBA Loans Unique?
SBA EIDL loans stand out because of their specific focus on economic injury. While other SBA disaster loans might cover physical damages, EIDL loans help cover the working capital needs until normal operations resume. This funding includes paying fixed debts, payroll, accounts payable, and other bills you can’t pay because of the disaster’s impact.
The Benefits of SBA EIDL Loans
The primary benefit of SBA EIDL loans is their ability to provide low-interest, long-term financial assistance to businesses in need. These loans offer favorable terms that typically aren’t available through traditional lending avenues, making them an attractive option for businesses facing economic hardship.
How Long Does Approval Take For An SBA EIDL Loan?
The timeline for processing an application for an SBA EIDL loan can vary. It depends on how many applications the SBA is receiving. In general, you’ll get a decision within twenty one days.
If your application isn’t complete or the SBA needs more information, processing will take longer.
After loan approval, you’ll receive the funds relatively quickly. Disbursement usually takes around five business days.
How To Check The Status Of Your SBA EIDL Loan
You can check your SBA disaster loan status online, by email, or by phone. This will tell you if the SBA has received your application and whether the review process has started.
Check Your Loan Status Online
If you submit your application online, checking your loan status through the SBA disaster loan portal is the most efficient method. You can log in using the same username and password you used for your application. You’ll be able to see the current status of your application and the date the status was last updated.
Check Your SBA EIDL Loan Status By Email
You’ll receive updates on your SBA EIDL loan status by email. You can also email the SBA for more information about your application or the EIDL process. Send your email to the disaster loan customer service team at disastercustomerservice@sba.gov.
Email is a suitable method if you have additional questions. Otherwise, using the SBA disaster loan portal to check your loan status will be faster.
Check Your SBA EIDL Loan Status By Phone
Call the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 to check your loan status. The representatives will be able to answer your questions about the EIDL program and your SBA EIDL loan application.
This method can be time-consuming, though. You may need to wait on hold if the service center is trying to handle many calls.
How Is An EIDL Different From Other Disaster Loans?
The SBA offers several types of disaster loans:
- Business physical disaster
- Mitigation assistance
- EIDL
As their name indicates, business physical disaster loans help businesses cover physical disaster losses. These disaster loans can be used to repair or replace property like machinery, equipment, or inventory.
Mitigation assistance helps businesses modify their facilities to reduce the damage from future disasters. Mitigation loans can cover upgrades such as installing pressure-rated windows, sump pumps, or a Class A fire-rated roof.
What Does An SBA EIDL Loan Cover?
An SBA EIDL loan provides working capital to help your business cover normal expenses like payroll, rent, utilities, and fixed debt payments. It covers financial obligations and operating expenses that your business could have met if the disaster hadn’t occurred.
An SBA EIDL loan doesn’t cover physical damage to your facilities. However, you may qualify for a physical disaster loan. You can receive an SBA EIDL loan and a physical disaster loan for the same declared disaster.
An SBA EIDL loan doesn’t cover physical improvements or expansions to your business, either. You can apply for a mitigation loan to make renovations that increase your business’s disaster preparedness.
Eligibility For An SBA EIDL Loan
The eligibility requirements for an SBA EIDL loan are relatively broad. To qualify for a disaster loan from the SBA, your organization must be a:
- Small business
- Small agricultural cooperatives, or
- Private non-profit organization
Most private non-profit organizations are eligible for an SBA EIDL loan. Government agencies or entities aren’t eligible, though.
Your business must be located in a designated disaster area. The SBA lists declared disaster areas on its website.
The third main requirement is that your business suffer “substantial economic injury.” The SBA defines this as an inability to pay your ordinary and necessary operating expenses.
You are only eligible for an EIDL if the SBA determines you can’t get credit elsewhere.
Terms And Conditions Of An SBA EIDL Loan
When your application for a disaster assistance loan is approved, the contract will list the loan’s terms and conditions. Understanding the loan terms will help you avoid problems during repayment.
SBA EIDL loans have a term of up to 30 years. The term depends on your ability to repay the loan. You can pay off the loan early with no penalties.
The interest rate for an SBA EIDL loan won’t be higher than 4%.
Loans over $25,000 require collateral. The SBA prefers real estate as collateral. Your loan officer will work with you to determine the right collateral for your loan.
How To Apply For An SBA EIDL Loan
You can apply for an SBA EIDL loan online through the SBA disaster loan portal. You’ll need to create an account and verify your identity. You can then enter information about your business, like a schedule of liabilities, your most recent federal tax return, and details of your insurance policy.
Be sure to read and follow the application instructions carefully. If your application is incomplete, the processing will be delayed.
Why You Should Reach Out to Cornerstone Capital Advisors for Help with Your SBA EIDL Loan
Disaster loans from the SBA can help your business keep operating even when a disaster strikes. An SBA EIDL loan gives you the capital to keep paying rent and utilities. Navigating the EIDL SBA loan process can be complex and time-consuming. That’s where Cornerstone Capital Advisors comes in. Our team of experts is here to help you every step of the way.
Masterful Guidance
With years of experience in helping businesses secure SBA EIDL loans, our team provides expert guidance tailored to your needs. We ensure that your application is complete and accurate, increasing your chances of approval.
Personalized Support
At Cornerstone Capital Advisors, we understand that every business is unique. We offer personalized support to help you understand your financial options and make informed decisions about your SBA EIDL loan.
Commitment to Your Success
Our commitment to customer satisfaction and success sets us apart. We work tirelessly to ensure you receive the financial assistance you need to overcome economic challenges and thrive. Our dedicated team is ready to assist you in navigating the application process swiftly and effectively, ensuring you receive the financial support needed to rebuild and safeguard your business against future uncertainties. Call Cornerstone Capital Advisors today at 954-434-1296 to secure your SBA EIDL disaster funding.
About Cornerstone Capital Advisors
Cornerstone Capital Advisors provides comprehensive financial advisory services to help businesses and individuals achieve their financial goals. Our experienced advisors specialize in loan funding for established businesses such as daycares and preschools, mergers and acquisitions, commercial real estate, asset-based lending, equipment financing, working capital loans, and SBA refinancing. With a commitment to excellence and client-centric solutions, Cornerstone Capital Advisors ensures you receive the expert guidance and support needed to navigate complex financial landscapes confidently.
