Loans For Small Business
Small Business Administration (SBA) Loans
Texas small businesses can now apply for SBA Economic Injury Disaster Loans to help with the COVID-19 crisis.
To learn more: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
To begin the loan application process: https://disasterloan.sba.gov/ela/
As you prepare to submit your application, the following financial/accounting data and information will most likely be required. You should have these documents ready:
- Written narrative statement justifying the nature and scope of economic injury and how/why nature of business was adversely impacted by the Coronavirus (one page/no more than two), such loss of revenues, cancelled contracts, interrupted supply chain, etc.
- Current Accounts Payable and Accounts Receivable Aging as of date of filing for the loan
- Three (3) years’ 1040 Federal Income Tax Returns for the business & owners
- Three (3) years’ company FYE Income Statement and Balance Sheet and latest YTD Financial Statements (Company prepared)
- Company and Owners’ Debt Schedule Tables [e.g., Lender, original loan amt., date, current balance, interest rate (F or V?), collateral, purpose of loan, guarantors, status (e.g., current or past due with explanation) per row in table]
- Monthly (reasonably detailed) two (2) years cash flow projections
- Three (3) years’ Monthly Sales History up to date of filing for loan
- Current copies of owners’ credit reports from the three (3) credit bureaus with explanations for any negative reports
- Owners’ Personal Financial Statements (SBA Form 413)
- SBA Form of Personal History for each (10% or more) owner
SBA Loan Process Questions
Are there local entities providing assistance applying for the Small Business Administration (SBA) loans?
Several resources partners such as UTSA’s Small Business Development Center, the Women’s Business Center, SCORE and Liftfund are providing small businesses direct assistance with the SBA loan application. Business owners may call 1-800-659-2955 for assistance or the status of their loan application.
How much time will it take for loan funds to be distributed once a loan is approved?
The exact timeframe will vary with each application depending on the amount of documents required. The usual processing timeframe for a SBA loan is 90 days, however, SBA is working expeditiously due to the current impact of COVID-19. Business owners may call 1-800-659-2955 for the status of their loan application.
Do the SBA loan amounts vary by industry and type of business, or an individual’s credit worthiness and collateral?
SBA loan applications are reviewed on a case by case basis. The industry and type of business has no direct impact on loan amount.
I understand the interest rate is a max of 3.75%, but does it vary by the individual’s credit worthiness?
No, all small business loans are provided a fixed interest rate of 3.75% and 2.75% for non-profits. Loan terms are allowed up to 30 years.
For questions about or relating to an EIDL loan application please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail email@example.com.
Additional Information About Disaster Loans
0% Interest Loan Program
Through a partnership with LiftFund, the City of San Antonio helps make 0% interest loans available to qualifying local small, minority, and women-owned businesses. Loans range from $500 to $100,000 and can be used to help start-up or existing business.
For more information, go to: https://www.liftfund.com/loans/
Unemployment Benefits Information
Texas Unemployment Insurance Information for Employers (PDF) - 3/26/2020
Texas Unemployment Insurance Information for Individuals (PDF) - 3/26/2020
On 3/17/20, Texas Governor Greg Abbott instructed the Texas Workforce Commission to waive the waiting week, for Unemployment Benefits. In addition to waiving the waiting week, the Texas Workforce Commission is exercising its authority under the Governor’s declaration of a Statewide Disaster to waive Unemployment Insurance work search requirements effective immediately.
Those seeking to apply for Unemployment Benefits will need to submit an application.
You will need the following:
- Last employer's business name and address
- First and last dates (month, day and year) you worked for your last employer
- Number of hours worked and pay rate if you worked this week (including Sunday)
- Information related to your normal wage
- Alien Registration Number (if not a U.S. citizen or national)
Additional Services: https://www.workforcesolutionsalamo.org/
Small Business Resource Partners
Launch SA is San Antonio's fueling center for entrepreneurs and small businesses. Staff members are available and can provide insights to help address specific challenges.
To connect: https://launchsa.org/contact/request-assistance/
Maestro Entrepreneur Center is committed to helping small businesses accelerate growth beyond the million-dollar revenue threshold.
To connect: https://maestrocenter.org/
Help From The San Antonio Economic Development Foundation
The San Antonio Economic Development Foundation (SAEDF) offers resources for employers and workers, including access to job boards and online learning tools.
Small businesses are also encouraged to create a contingency plan. The U.S. Chamber of Commerce Offers guidance online.
Shared Work Program
The Texas Workforce Commission (TWC) encourages employers to enroll in the Shared Work program as an alternative to layoffs. The voluntary Shared Work program was developed to help Texas employers and employees withstand a slowdown in business such as the impact of COVID-19.
For more information visit: https://twc.texas.gov/businesses/shared-work
Legal Tips For Small Businesses
As a small business owner, you may be finding that COVID-19 and its effects present unprecedented issues with contract compliance. In considering a party’s performance under a contract, there may be several clauses built into your agreements that might be invoked to assist your small business.
Review your agreement for force majeure clauses – Force majeure clauses may be triggered when extraordinary events, sometimes called Acts of God, prevent a party from being able to fulfill its contractual obligations. Monitor the changing condition of the crisis and make note of government declarations and states of emergencies that making performance of your obligations impossible. Be aware, though, that an increased cost to perform your obligations or the likelihood of a poor performance may not be enough to invoke a force majeure clause.
Consider having an insurance specialist review your insurance policies – Your agreement may require that you carry business interruption insurance or other coverages that may apply to the presence of COVID-19. Review your policy for language about communicable or infectious diseases, or conversely, exclusions related to virus-related losses. It is best, if possible, to have an independent third party review the policy, rather than your broker or insurance company.
Consider sitting back down at the table – You and the other party to the agreement may be able to discuss whether there are alternative means to perform contractual obligations. The other party may be amenable to adjust performance under the circumstances, including extended deadlines or partial performance of obligations.
*Please note that contractual clauses can be interpreted differently, so it is important to discuss your situation with an attorney, whether you are seeking to enforce or excuse performance under your contract.
To learn more: https://www.liftfund.com/loans/
Resources For The Food And Beverage Industry
Visit San Antonio has created a web page that highlights restaurants providing alternative dining options such as take-out, delivery, and drive-thru services.
If you’d like to include your restaurant on this list, email firstname.lastname@example.org with:
- Business name
- Physical address
- Phone number
Other Resources For To-Go Restaurants:
San Antonio Restaurant Gift Cards
Houston Street Charities and San Antonio Cocktail Conference have created a one-stop shopping website for San Antonio restaurant gift card purchases. If you have a restaurant that you'd like to have included on this site, please contact Cathy Siegel at email@example.com
Disaster Relief Initiatives For Food And Beverage Industry
More Information And Resources
COVID-19 Information Webinars
For calendar of upcoming webinars about COVID-19 as it relates to the business community, please visit the City of San Antonio's Economic Development Department WEBSITE.
SBA Economic Injury Disaster Loan WEBINARS
These free sessions will cover the basics of the SBA’s Economic Injury Disaster Loan (EIDL) program, how to apply and where you get additional help with preparing and applying for an SBA Economic Injury Disaster Loans through the SBA's website.
The information presented on all calls will be the same. Please join at the date and time best for you.
Join by phone: +1 210-469-4148