Tester Announces Emergency Economic Assistance Declaration for All 56 Montana Counties
The Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to help overcome the temporary loss of revenue they are experiencing.
Senator: “I’m going to keep fighting to make sure Washington doesn’t leave rural America behind”
(U.S. Senate) – After an aggressive push on behalf of Montana small businesses, U.S. Senator Jon Tester announced that the Small Business Administration (SBA) today declared an Economic Injury Disaster Loan declaration for all 56 Montana counties in response to the outbreak of the 2019 novel coronavirus (COVID-19), which will provide much-needed economic support for Montana’s main street businesses.
Earlier this week, Tester announced that the SBA declared a disaster in only 30 Montana counties.
“I’m glad the SBA expanded their declaration to include our entire state, because we need to provide relief to Main Street businesses in every corner of Montana as soon as possible,” said Tester. “Small businesses are the backbone of our rural communities and the lifeblood of our state, so we’ve got to make sure they have the resources they need to keep the wolf away from the door. I’m going to keep fighting to make sure Washington doesn’t leave rural America behind in the face of this outbreak.”
Under the Tester-backed Phase I COVID-19 legislative package signed into law in early March, the SBA can issue an Economic Injury Disaster Loan declaration, which makes loans available to small businesses and private, non-profit organizations in designated areas to provide relief from the effects of the COVID-19 outbreak.
Tester has led the charge in responding to the coronavirus pandemic. He has introduced legislation—now law—to guarantee testing for the virus will be at zero cost, and he passed bipartisan legislation through the Senate to ensure veterans GI benefits are protected during the outbreak. He has also doubled down on his efforts to press the U.S. Department of Veterans Affairs (VA) and Indian Health Service to provide veterans, VA healthcare staff, and Tribes with access to proper resources and information.
All counties within the State of Montana;
the contiguous Idaho counties of: Bonner, Boundary, Clark, Clearwater, Fremont, Idaho, Lemhi & Shoshone;
the contiguous North Dakota counties of: Bowman, Divide, Golden Valley, McKenzie, Slope & Williams;
the contiguous South Dakota counties of: Butte & Harding;
and the contiguous Wyoming counties of: Big Horn, Campbell, Crook, Park, Sheridan & Teton
Application Filing Deadline: December 17, 2020
Disaster Loan Assistance Available:
Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay the loan.
• Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 3.75 percent.
The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.
Loan Amount Limit:
The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.
Loan Eligibility Restrictions:
Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.
Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.
Economic injury disaster loans cannot be used to refinance long term debts.
To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.