Small businesses can apply for low-interest loans

The Maui News

Hawaii small businesses suffering financial losses from the impact of COVID-19 can file for low-interest working capital loans of up to $2 million from the Small Business Administration, Gov. David Ige announced Friday.

The SBA approved a certification request submitted by Ige, clearing the way for Hawaii small businesses to participate in the SBA’s Economic Injury Disaster Loan (EIDL) Assistance Program. The loans can be used to pay fixed debts, payroll and other bills that can’t be paid because of a disaster’s impact.

Loan applicants are required to file the following documents:

• Loan application (SBA Form 5), completed and signed.

• Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant, each principal owning 20 percent or more of the applicant’s business, each general partner or managing member and any owner who has more than 50 percent ownership in an affiliate business. Affiliates include business parents, subsidiaries, and/or other businesses with common ownership or management.

• Complete copies, including all schedules, of the most recently filed federal income tax returns for the applicant business.

• 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.

• Schedule of Liabilities with all fixed debts (SBA Form 2202).

Loan forms and additional information can be accessed online at the SBA’s Disaster Assistance Loan Portal at disasterloan.sba.gov/ela.

Interest rates for the loans are 3.75 percent for small businesses without credit available elsewhere. The interest rate for nonprofits is 2.75 percent. The SBA tries to make a decision on each application within 21 days.