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Pennsylvania Requests Disaster Declaration for SBA Disaster Relief Assistance Loans - 18 Other States Now Eligible To Apply

Corporate and Securities Alert | March 19, 2020
By: Ryan J. Udell and Adam Chelminiak

On March 18, 2020, Pennsylvania Governor Tom Wolf formally requested that the U.S. Small Business Administration (SBA) implement a disaster declaration for all 67 counties in Pennsylvania. Governor Wolf certified that the coronavirus (COVID-19) pandemic and statewide closure of non-essential business are resulting in unprecedented economic losses across industries including entertainment, hospitality and recreation facilities. An SBA disaster declaration will enable affected small businesses and non-profit organizations to apply for an Economic Injury Disaster Loan (EIDL) of up to $2 million in assistance to cope with the loss of revenue.

Once the Governor’s request is granted, eligible businesses will be able to apply for EIDL assistance online. To qualify, a business must demonstrate “substantial economic injury” by being unable to pay regular expenses and unable to obtain credit for more than $350,000 from other sources. Applicants will be required to complete a Disaster Business Loan Application (SBA Form 5), as well as additional forms covering personal financial statement, schedule of liabilities and requests for transcripts of tax returns.

Once received, EIDL funds can be used as working capital to help cover fixed debts, payroll and other obligations that can’t be paid because of the impact of coronavirus on revenue. The loan amount will be determined based on an applicant’s actual economic injury and financial need. Interest rates will be 3.75%, or 2.75% for non-profits, and repayment terms (up to a maximum of 30 years) will be determined on a case-by-case basis, based upon a borrower’s ability to repay.

As of March 18th, disaster declarations have already been implemented for affected areas of 18 states and territories, including neighboring New Jersey and Delaware.

New Jersey’s disaster declaration encompasses the following primary counties:

Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren (also covering certain contiguous counties in Delaware, New York and Pennsylvania)

Delaware’s disaster declaration encompasses the following primary counties:

Kent, New Castle and Sussex

The SBA has also implemented disaster declarations for affected areas in the following states:

  • California;
  • Connecticut;
  • District of Columbia;
  • Florida;
  • Georgia;
  • Indiana;
  • Maine;
  • Massachusetts;
  • Montana;
  • Nevada;
  • New Hampshire;
  • New Mexico;
  • North Carolina;
  • Rhode Island;
  • Utah; and
  • Washington.

This list is expected to expand in the coming days and we will continue to follow the disaster loan program and offer updates as developments arise. If you have any questions about how to apply for a loan or other business continuation planning options, please contact Ryan Udell (; 215.864.7152), Adam Chelminiak (; 215.864.7078) or another member of the Corporate and Securities Group.

As we continue to monitor the novel coronavirus (COVID-19), White and Williams lawyers are working collaboratively to stay current on developments and counsel clients through the various legal and business issues that may arise across a variety of sectors. Read all of the updates here.

This correspondence should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult a lawyer concerning your own situation and legal questions.
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