SBA Economic Injury Disaster Loan Overview

SBA Economic Injury Disaster Loan Overview

ELIGIBLE ENTITIES:
● Applicants must meet the SBA requirements of a small business (500 employees or
fewer)
● Businesses directly affected by COVID-19


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
● Religious 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 regardless of 1/3 criteria
above.
● Cannabis Industry

LOAN APPROVAL CRITERIA:
● Credit History: Applicants must have a credit history acceptable to SBA
● Repayment: SBA must determine that the applicant business has the ability to repay
the SBA loan

HOW MUCH YOU CAN BORROW:
● Eligible entities may qualify for loans up to $2 million.
● The interest rates for this disaster are 3.75 percent for small businesses and 2.75
percent for nonprofit organizations with terms up to 30 years
● Eligibility for these working capital loans are based on the size (must be a small
business) and type of business and its financial resources

HOW THE FUNDS CAN BE USED:
● These working capital loans may be used to pay fixed debts, payroll, accounts
payable, and other bills that could have been paid had the disaster not occurred.
● The loans are not intended to replace lost sales or profits or for expansion.
● Funds cannot be used to pay down long-term debt.

WHAT IS NEEDED TO APPLY:
● Completed SBA loan application (SBA Form 5)
● Tax Information Authorization (IRS Form 4506T) for the applicant, principals and
affiliates
● Complete copies of the most recent Federal Income Tax Return
● Schedule of Liabilities (SBA Form 2202)
● Personal Financial Statement (SBA Form 413)
● Income, balance sheet, and cash flow documents
● Other Information may also be requested

OTHER INFORMATION THAT MAY BE REQUESTED:
● Complete copy, including all schedules, of the most recent Federal income tax return
for principals, general partners or managing member, and affiliates (see filing
requirements for more information)
● If the most recent Federal income tax return has not been filed, a year-end
profit-and-loss statement and balance sheet for that tax year
● A current year-to-date profit-and-loss statement
● Additional Filing Requirements (SBA Form 1368) providing monthly sales figures

HOW SOON WILL BUSINESSES RECEIVE MONEY?
● Eligible businesses that submit complete loan packages could receive money within
three (3) weeks
● Incomplete information and verification of collateral will delay approval process

HOW TO APPLY:
● Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s
secure website at https://disasterloan.sba.gov/ela
● Paper loan applications can be downloaded from www.sba.gov /disaster. Completed
applications should be mailed to: U.S. Small Business Administration, Processing and
Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155
● Disaster loan information and application forms may also be obtained by calling the
SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and
hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov