In anticipation of a Federal Disaster Declaration for the Coronavirus (COVID-19) in Kansas, we are attempting to provide as much information as possible about the assistance that will authorize.  The most often discussed assistance in our business community will be access to Small Business Administration Economic Injury Disaster Assistance Loans (EIDL).  Attached to this email is a document that will help you prepare for the three-step application process. I’m also including a summary of the most often asked questions about the program and additional considerations for any disaster.

As always, we are available to assist in any way we can to help you get answers to your questions from our partners at the state Departments of Commerce, Agriculture, Emergency Management, the USDA, and especially the Small Business Administration.  We have been in regular contact with each of them and will continue to do so. Please do not hesitate to reach out and we will do our best to obtain the most up-to-date information as soon as possible.

Vernon Hurd

Executive Director

Thomas County Economic Development Alliance

Office: 785-460-4511

Cell:  785-443-3890


Economic Injury Disaster Loans

Small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, nonprofit organizations of all sizes suffering substantial economic injury may be eligible for an Economic Injury Disaster Loan of up to $2 million to meet necessary financial obligations – expenses the business would have paid if the disaster had not occurred.

Interest Rates

The interest rate on these loans will not exceed 4 percent if you do not have credit available elsewhere. Repayment can be up to 30 years, depending on the business’s ability to repay the loan. For businesses and nonprofit organizations with credit available elsewhere, the interest rate will not exceed 8 percent. SBA determines whether the applicant has credit available elsewhere.

Application Information
Businesses may apply directly to the SBA for possible assistance once the declaration has been made.  As of  11:10am on March 17, 2020 the declaration has not yet been made for the State of Kansas, but the necessary steps are being taken by the Kansas Department of Emergency Management with the assistance of the Kansas Department of Commerce.

SBA now offers you the option of filing your business disaster loan application electronically. Downloadable application forms are available at: Apply for Assistance.

For additional information, please contact the SBA Customer Service Center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail

Frequently Asked Questions

What information must I submit for a disaster loan?
Submit a completed loan application and a signed and dated IRS Form 4506-T giving permission for the IRS to provide the SBA your tax return information.

To process your application SBA will need current financial information such as a personal financial statement, a current profit-and-loss statement, balance sheet and a list of debts.

How soon before I know I’ve been approved for a loan?
The sooner you return the completed loan application, the sooner the SBA can process it. The SBA tries to make a decision within two to three weeks. Make sure the application is complete. Missing information is a major cause of delays.

Is collateral required for these loans?
EIDL loans over $25,000 must be secured to the extent possible.

Should I wait for my insurance settlement before I file my loan application?
No. Don’t miss the filing deadline by waiting for an insurance settlement. Final insurance information can be added when a settlement is made. The SBA can approve a loan for the total replacement cost, but any insurance proceeds that duplicate SBA’s loan must be applied to your SBA loan.

How may I use an Economic Injury Disaster Loan?
The loan provides working capital for disaster-related needs until your business or private, non-profit organization recovers. You may request an EIDL for the amount of economic injury but not in excess of what your business or private, non-profit organization could have paid if the disaster had not occurred. EIDL loans cannot refinance longterm debts or provide working capital needed before the disaster. EIDL loans do not replace sales or lost profits.

Must I submit a personal financial statement with my loan application?
Yes. The SBA must review a financial statement for each owner and one for each partner, officer, director and stockholder with 20 percent or more ownership. The SBA requires the principals of the business to personally guarantee repayment of the loan, and in some instances to secure the loan by pledging additional collateral.

Other Important Considerations for Any Disaster

Plan to Stay in Business
Continuity planning assures your business will function as soon as possible after a natural or man-made disaster.

Review Insurance Coverage
Inadequate insurance coverage can lead to major financial loss if your business is damaged, destroyed or simply interrupted. Store records your insurance provider will want to see after an emergency in a safe place.

Prepare for Utility Disruptions
Examine which utilities are vital to your business’s day-to-day operation. Identify back-up options such as portable generators to power the vital aspects of your business in an emergency.

Secure Facilities, Buildings and Plants
Identify what production machinery, computers, custom parts or other essential equipment is needed to keep your business open. Plan how to replace or repair vital equipment. Store extra supplies for use in an emergency. Plan what you will do if your building, plant or store is not usable.

Back-up Financial Records
Back-up financial records and other vital information stored on computer hard drives. Files should be stored in a portable lockbox office, at least 500 miles away.