SBA Loans Available for Coronavirus Affected Businesses

March 26, 2020

The US Small Business Administration (SBA) is providing disaster financing to non-farm small businesses through the Economic Injury Disaster Loan Program, specifically in relief of the coronavirus (COVID-19) epidemic.  This program can provide up to $2 million of financial assistance to small businesses or private, nonprofit organizations that suffer substantial economic injury as a result of a declared disaster, regardless of whether the applicant sustained physical damage.

These loans can help you meet necessary financial obligations that your business or private nonprofit organization could have met had the disaster not occurred.  It provides relief from economic injury caused by the disaster, permits you to maintain a reasonable working capital position during the period affected by the disaster, but do not replace lost sales or revenue.

Visit the SBA Disaster Loan Assistance website for full details and downloads of applications.

Program Details

  • Available in all US states
  • Loan maximum up to $2 million
  • Working capital loans can be used to meet payroll, accounts payable, and fixed debt obligations
  • Interest rates 3.75% for small businesses, 2.75% for nonprofits
  • One year deferred first payment from date of note


  • Loans greater than $25,000 must be backed by collateral.  Commercial real estate takes priority (equity or lien position irrelevant).  Other fixed assets are acceptable when commercial real estate not available.
  • Cannot consolidate loan on coronavirus disaster with a prior existing SBA loan.
  • Application forms and information required:
    • Loan Application
    • IRS Form 4506-T – Disaster Request for Transcript of Tax Returns
    • Most recent tax filing for owner(s) and affiliates
    • Schedule of debt
    • Profit and loss statement interim within 90 days of application
    • Personal financial statement

Other Information

  • There is no application fee.
  • Appraisals are not required, regardless of perceived equity in collateral.
  • Streamlined application process, anticipated 21 day turnaround.
  • SBA will be looking at a minimum six-month projections to determine need.