NOTE: The COVID-19 Crisis is changing rapidly. The information in this article may have changed or be incomplete. Check with the SBA to ensure accuracy. The USMA is continuing to monitor the situation and distribute updated information.
The Small Business Administration (SBA) has opened up some new programs to support businesses affected by the Corona Virus (COVID-19) emergency. Motorsports companies are encouraged to review these funding opportunities if they have been impacted by COVID-19.
One of them is the SBA Economic Injury Disaster Loan Program which offers up to $2 million in assistance and provides crucial financial support to a small business adversely affected by the temporary loss of revenue due to the Coronavirus (COVID-19). These disaster loans can be used to pay fixed debts, payroll, accounts payable, and other bill's the business is unable to pay due to negative impacts of COVID-19. The interest rate is 3.75% for small businesses without credit elsewhere. SBA offers loans with long-term repayments in order to keep payments low and affordable for up to thirty years.
These loans are currently available to businesses across much of the country. SBA Disaster loans involve a three-step process.
Apply for the loan
Property verified and loan processing decision made
Loan closed and funds disbursed
SBA staff will review company credit and inspect your business to verify your losses and economic hardships. An SBA Loan Officer will determine your eligibility during the application process. The loan officer will work with the business for a two to three week period and have a final decision within that time frame.
SBA prepares and sends the loan closing documents to applicants for signature. Upon receipt of loan closing documents, an initial fund disbursement will be received by the applicant within five days. SBA will assign a case manager to the applicant to assist in meeting all loan conditions. The loan can be adjusted after closing if there are changing circumstances like unexpected repair costs.
Additional information is available at Disaster Loan Assistance.
If you have specific questions or need further assistance we are here to help our USMA members. Please contact me directly at firstname.lastname@example.org or call our office: 704-325-8003
Government Affairs Director
United States Motorsports Association