Economic Injury Disaster Loans are a type of federal assistance forms that are taken for covering the private sector disaster losses. The disaster loan program might be a form of small business administration but is not confined only for small businesses and can also be considered for sound businesses.
Economic Injury Disaster Loans generally provide financial assistance upto $1.5 to $2million. Though the loan amount is also dependent upon the amount consumed in an economic injury but again maximum $2million of loan is justifiable. The loans provided to private organizations, small businesses and any other non profit organizations are also dependent on the economic injury that might be caused due to some declared disaster. Even if the applicant of loan has survived through physical damage, the loan is still applicable in his case.
Economic Injury Disaster Loans can also help a small business in meeting the financial obligations even when there is no disaster caused. Please note no economic injury disaster loan replaces lost revenues and sales. All it does is provide relief from the economic injury that is caused directly or indirectly by the disaster and needs you to maintain an appropriate working capital position during your affected period.
Another thing to note is that, the disaster loan assistance is only provided to all those small businesses and private organizations that have undergone economic injury. Also if any of them is located in the disaster declared county then that particular non profit organization is eligible for economic injury disaster loan. Now that we know about the eligibility criteria for the loan, let us understand how to apply for the economic disaster injury loan in the easiest possible way.
The 3 Simple Steps
The small business administration is known for providing low interest and long term disaster loans therefore understanding how to apply for the same is essential. As you know these loans can be provided to businesses of all sizes. From private non profit organizations to small businesses, homeowners etc anyone can apply for the economic injury disaster loan. The loan company offers the most affordable way of applying for the loan and recovering from the declared losses.
Apply For The Loan
You can either apply for the economic injury disaster loan online, through mail or in person by going to the disaster center. Whatever size of the business you own, you are applicable for the loan upto $2 million for economic injury. In case you wish to know more about the same you can connect with some loyal disaster loan center.
Property Verification & Loan Processing
Once you are done applying for the economic injury disaster loan, the small business administration reviews your credits before verifying your losses through an inspector. The work of an inspector or verifier is to calculate the loss that has happened through the disaster and understand the damage caused. Further the approval goes in the hands of the loan officer who then verifies your eligibility after he reviews the insurance and other recoveries from your end. Please note small business administration can approve your loan for insurance recovery. By the time the insector works with you to provide all the information that you and he may need while determining your loans, everything happens during the time period of a month. Lastly the loan officer would himself contact you to help you out with loan recommendations and further execution.
Lastly, the small business administration will send you the cloning documents of the loan and the initial disbursement will be made within a week. The subsiding disbursement will be received by you till the time you receive full amount. Hence this how the whole of the process will take place.