1. SBA Office of Disaster Assistance
Coronavirus Disaster FAQs
What if the application is down?
Applicants may choose to apply using a Paper Application. They can do this through the same
webpage: disasterloan.sba.gov, by selecting “Loan Information” at the top of the screen. This
provides a list of links to all the necessary forms required.
Once completed, they can find the mailing/email instructions at the top of the same page, under
“COVID-19 Delivery Options”.
Mail:
US SBA – ELA Mail
P.O. Box 156119
Ft. Worth, Texas 76155
Email:
disasterloan@sba.gov
How can SBA help my business?
Through its Economic Injury Disaster Loan program (EIDL), SBA can provide eligible small
businesses (and nonprofits of any size) with low-interest working capital loans to help meet the
short-term needs of a business caused by an interruption in revenues resulting from the
Coronavirus pandemic.
How much can I borrow?
SBA Economic Injury Disaster Loan amounts are made on a case-by-case basis based on the
specific circumstances of the individual business. The maximum loan amount for this program is
$2 million.
What is the interest rate?
The interest rate for businesses is 3.75% and for eligible non-profits is 2.75%
2. What is the term?
SBA offers loan terms up to a maximum of 30 years. Terms are determined on a case-by-case
basis, based on each borrower’s ability to repay.
Is collateral required?
Loans in excess of $25,000 require collateral. SBA will use business assets to secure loans
made as a result of the coronavirus declarations. Real estate will not be used as collateral.
What can I use the funds for?
SBA EIDL loans are intended to address the short-term needs of the business. Expenses such
as: Payroll, Accounts Payable, Mortgage Payments, Lease Payments, Insurance Premiums,
and Utilities are among the acceptable use of proceeds.
Can I refinance my Mortgage with the SBA loan?
No. The loan funds may not be used to refinance, or payoff long-term debt. However, it can be
used to make payments on existing mortgage or other installment loan debt.
Do I have to pay the loan back?
Yes.
When is the first payment due?
Repayment on these loans start 12 months from the date of the Note for a deferment period of
11 months.
Does interest accrue during the deferral period?
Yes.
What can I use the funds for?
SBA EIDL loans are intended to address the short-term needs of the business. Expenses such
as: Payroll, Accounts Payable, Mortgage Payments, Lease Payments, Insurance Premiums,
and Utilities are among the acceptable use of proceeds.
Are Churches eligible?
No. Religious organizations are ineligible for SBA Economic Injury Disaster Loans.
What is a “Small Business”?
Small business size standards are established based on specific industries as defined in the
North American Industry Classification System. SBA makes size the standard determination as
part of the loan decision-making process.
Can I use the loan funds to purchase fixed assets?
No.
3. How do I apply?
You may apply by visiting our website at disasterloan.sba.gov.
How can I get a deferment on my existing SBA disaster loan?
Payments on all existing SBA disaster loans are being deferred through December 31, 2020
automatically. It is not necessary to make a formal request to receive a deferment. This only
applies to SBA disaster loans. Payments on SBA guaranteed loans originated through a private
lender are not included in this policy.
Who qualifies for these small business loans?
Businesses in any U.S. state with fewer than 500 employees who are unable to pay their bills
because of the coronavirus pandemic.
How long will it take?
After you submit an application, the SBA will review your credit before conducting its own
inspection to verify your losses. This includes reviewing any insurance recoveries you may
have. The agency can issue you a loan while recoveries are pending. The SBA says its goal is
to arrive at a decision on any disaster loans within two to three weeks. If it determines you are
eligible, it will send you a loan closing document for your signature. An initial disbursement of
$25,000 will arrive within five days, according to SBA informational materials. The rest of your
loan will be disbursed on a schedule until you receive the full amount. The schedule will be set
by an SBA loan officer whose job is to ensure you meet all the loan conditions.
What information will I be asked to provide?
Loan applicants are asked to provide a transcript of your most recent tax return and a tax
information authorization form, a detailed accounting of your personal assets, sources of income
and unpaid taxes. Those additional forms and instructions are posted here on the agency’s
website. You will also have to include names and personally identifiable information for all
proprietors, partners or stockholders who own at least 20 percent of the business.
What if I haven’t filed my taxes yet?
In lieu of a tax return, the SBA asks for a year-end profit-and-loss statement and balance sheet
for that tax year.
