Disaster Loan Assistance

How to Fill out Your SBA Disaster Loan Application


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The SBA Economic Injury and Disaster Loan (EIDL) is a low-interest loan for small businesses affected by COVID-19.

Here’s how to apply for the loan and fill out your application. Where do I apply? You can apply through the SBA website here. At a high-level, what does the application process involve?

  1. Complete the streamlined initial application online.

  2. Gather all necessary documents listed in this guide to prepare for the loan application process.

  3. The SBA reviews your credit and requests additional documentation. A loan officer may contact you via the online portal, phone, or email.

  4. If approved, you accept or decline your loan. If you approve, you receive initial disbursement within five days of signing.

  5. Repayments start 11 months later.

We recommend applying ASAP to avoid delays. You can apply online here. What you’ll need to apply As far as financial statements, all you’ll need to apply is an income statement spanning February 2019 to January 2020. If you don’t have an income statement, Bench can help. We can prepare financial statements for you and talk you through your financing options. Get a free consultation. The application form (step by step)

Section 1: Disclosures This section asks you to verify your eligibility in two ways: first, select the type of business you are applying on behalf of. Secondly, you will be asked to check off each box listing the SBA’s eligibility requirements. If you are unable to check each box, you may not apply.

Section 2: Business information This section makes up the bulk of your application. You will need your income statement as of January 31, 2020 on hand. It is important to note that not all answers are required.

Questions to watch out for:

  • Applicant’s Legal Name: Use your business name, shown exactly as it appears on your tax return.

  • Business Phone Number: Use a personal phone number so it’s easy to get a hold of you.

  • Gross Revenues for the Twelve(12) Month Prior to the Date of the Disaster (January 31, 2020): This number will be on your annual income statement

  • Cost of Goods Sold for the Twelve(12) Month Prior to the Date of the Disaster (January 31, 2020): This number will be on your annual income statement

  • Compensation From Other Sources Received as a Result of the Disaster: List any grants received

Only fill out the sections not marked by a red star if they apply to your business. For example, you should not fill out “Non-Profit Cost of Operation for the Twelve(12) Month Prior to the Date of the Disaster (January 31, 2020)” unless your business is a Not-for-Profit.

How to calculate your gross revenue On the application, you’ll be asked to state your business’ gross revenue. If you don’t have an income statement prepared already, here’s how to calculate it yourself.

Gross revenue is the total amount of money your business received from your products and services over the last year, without taking costs into account.

How do you find your gross revenue? Add up every sale your business made over the last year (before taking into account payment processor fees). That final number is your gross revenue.

How to calculate your Cost of Goods Sold (COGS) The application will also ask for your Cost of Goods Sold (or “Cost of Service” if your business sells services). Your income statement will have this information. But again, if you don’t have an income statement, here’s how to calculate your COGS. COGS is the total cost associated with making or acquiring any goods sold during the reporting period.

That includes raw materials and the cost of direct labor. It can also include overhead costs directly connected to your profit-making activities—like utilities for a manufacturing facility, for instance. There are two important things to note about calculating Cost of Goods Sold:

  1. COGS is calculated based only on products you actually sold to customers and doesn’t include inventory you still have on hand.

  2. It’s all about the production costs you incurred, and doesn’t include broader overhead expenses for the general operation of your business.

COGS = Beginning Inventory + Inventory Purchases Made During the Reporting Period - Ending Inventory

The three numbers involved in your COGS calculation are:

  1. Beginning inventory: The value of the product you started with. This should be the exact same number as your ending inventory from the previous reporting period.

  2. Inventory purchases made (during the reporting period): The value of what you added throughout the year.

  3. Ending inventory: The value of what’s left over at the end. If you have a smaller business, you will physically count everything that’s leftover. If you have a bigger operation, you’ll perform spot checks on your stock.

How to calculate Cost of Service (COS) If you’re a services provider, you instead need to calculate your Cost of Service, which is simpler than COGS.

Cost of Service is just all the costs you incur during the process of providing your service. So if you’re a lawyer and you need to pay $8 to print a few hundred pages of a contract on behalf of a client, that $8 is part of your COS.

If you’ve been keeping up with bookkeeping, this shouldn’t be too difficult. If you haven’t been categorizing your transactions as you go, this will be trickier. If you need help with your retroactive bookkeeping and financial statements, InWorks Tax Services can help. Reach out to us for a free consultation.

Section 3: Business owners information First, indicate whether your business is fully owned by another business. You would only select this if your business was a subsidiary of another company.

If your business is owned by individuals, you will need to fill out an Individual Owner section for each member of your business that owns 20% or more. Click the “add additional owner” box as many times as required. These individuals should be aware that the SBA will likely run a credit check on them as well.

You will need to include personal information here, such as:

  • SSN

  • Date of birth

  • Place of birth

  • Whether you’re a US Citizen

  • Residential street address

Section 4: Additional information The first three questions ask you to specify whether any applicants - including any additional owners - have been involved in criminal charges. This is not always a hard disqualifier for the SBA, which is why it was not included in the Disclosures section, but may dramatically affect your chances of acceptance.

Fill out the section in blue only if you have hired a serv