In response to the staggering impacts of COVID-19, the federal government is providing recovery loans to eligible organizations. Colorado small businesses can apply for a low-interest rate Economic Injury Disaster Loan (EIDL) through the U.S. Small Business Administration. The following provides details on eligibility, how to apply and recommendations.

ELIGIBLE ENTITIES:

• Applicants must meet the SBA requirements of a small business (500 employees or fewer)
• Businesses directly affected by COVID-19
• Businesses that offer services directly related to the businesses in the declaration
• Other businesses indirectly related the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product)

INELIGIBLE ENTITIES:

• Agricultural Enterprises: If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance.
• Religious Organizations
• Charitable Organizations
• Gambling Concerns (Ex: Concerns that derive more that 1/3 of their annual gross revenue from legal gambling activities)
• Casinos & Racetracks (Ex: Businesses whose purpose for being is gambling (e.g., casinos, racetracks, poker parlors, etc.) are not eligible for EIDL assistance regardless of 1/3 criteria above)
• Cannabis Industry

Important Recommendations as you fill out the SBA EIDL application - 

• Include the specific disaster in your application - specifically reference "COVID-19" or Coronavirus.
• Apply online vs. by mail - it's much, much faster.
• Write your login and password information down. Neither the system nor any SBA personnel are able to retrieve it - you will have to start over!
• Save your work at every prompt.
• Do not rush through the application. Check and recheck the filing requirements to ensure that all the needed information is submitted. The biggest reason for delays in processing is due to missing information.
• Make sure to complete all filing requirements before submitting the application and forms.
• Be sure to use the same contact information (business name and the name of all owners) that you use on your federal tax returns. Double-check that they match.
• If your tax returns reference other businesses that you own, you must also submit those tax returns in order to avoid processing delays.
• If more funds are needed, applicants can submit supporting documents and a request for an increase. If fewer funds are needed, applicants can request a reduction in the loan amount.
• If the loan request is denied, the applicant will be given up to six months in which to provide new information and submit a written request for reconsideration.

LOAN APPROVAL CRITERIA:

• Credit History: Applicants must have a credit history acceptable to SBA
• Repayment: SBA must determine that the applicant's business has the ability to repay the SBA loan
• Eligibility: The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons

You may complete the application on your own (be sure to save frequently!), and can contact the Boulder SBDC if you come across any hurdles and need assistance. If you would like assistance in advance or would like to discuss your business, the Boulder Small Business Development Center (SBDC) is available. Staff are working remotely. Consultations are being conducted by phone or video conference, and in-person trainings are being converted to online webinars. More information is available at BoulderSBDC.com. Contact the Boulder SBDC or call the SBA Disaster Assistance Customer Service Center at 800-659-2955.

The "Webinar Materials" document contains helpful information about the SBA Economic Injury Disaster Loan (EIDL) application process. It is a step-by-step training that was prepared for SBDC consultants. Please use the material to (1) see the complete online application in advance and (2) better understand the required documents you will be asked to upload during the application process. You can find additional information by viewing the SBA EIDL information sheet.