Small businesses impacted by the COVID-19 pandemic can apply for Economic Injury Disaster Loans from the Small Business Administration of up to $2 million at low interest rates. Congress is considering allocating $50 billion in loans for businesses through the SBA's 7(a) loan program. To apply for these coronavirus business loans, impacted counties must provide documentation on affected local businesses to the SBA to expedite the approval process.

1. Small
Businesses
Need
Business
Loans to
Survive the
Covid-19
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2. If you’re among those small business owners that need financial
assistance because of the current coronavirus pandemic, you can
apply for a business loan via the Small Business Administration’s
loan program. The president of the United States has advised the
SBA to made low-cost capital available to small businesses through
the Economic Disaster Injury Loan program. Trump also asked
Congress for an infusion of $50 billion in loans for businesses.
Most states have declared “disaster” due to the coronavirus
pandemic and all affected businesses in that State can apply
for business loans via the Economic Injury Disaster Injury Loan
(EIDL) funds.

3. SBA Coronavirus
Disaster Loan Program
With the SBA’s Economic Injury Disaster Loans of up to $2 million, small businesses can
offset their temporary revenue losses because of coronavirus disaster. For non-profits, the
interest rate is 2.75% on EIDLs and 3.75% for small businesses that have adequate cash
available or can get funding from other sources to cover the costs at the loan terms of 30
years max. The repayment terms are typically based on the borrower’s loan repayment
ability.
SBA directly lend the EIDLs to small business owners. Usually, the SBA does not lend loans
directly to small businesses. The SBA partially guarantees loans that are made by their
network of lenders through their SBA 7(a) and 504/CDC loan programs.
The SBA has made interest rates lower, and the legislation that advances funding to the
SBA will perhaps make these loans even more affordable and widely available.
March2020

4. How to Apply for Coronavirus
Business Loans?
The process of applying for Coronavirus business loans via the SBA is
as follows:
The Economic Injury Disaster Loan assistance by the SBA to extend loans
to small businesses, private nonprofit, homeowners and renter
organizations in elected areas of a state to help relieve economic damage
caused by the coronavirus pandemic.
The SBA Office of Disaster Assistance will interact with the state’s
administrator to submit the application for the Economic Injury Disaster
Loan.
March2020

5. How to Apply for Coronavirus
Business Loans?
The information on the process of applying for Economic
Injury Disaster Loan will be provided to the affected
communities along with updated on
the SBA.gov/disaster after the declaration is made for
designated State’s areas. With that said, if you need funding
you’ve to ask your State governor who will officially request
SBA’s Office of Disaster Assistance to obtain the funds.
March2020

6. How to Apply for Coronavirus
Business Loans?
For more information on the disaster loan program, and to
check the listing of your state on the Declarations list,
please visit the SBA disaster assistance website at
SBA.gov/Disaster.
In order to stay current on the availability of funds, follow the
SBA website, Disaster Loan Assistance website, and contact
the disaster service center at 1-800-659-2955 or email
at disastercustomerservice@sba.gov
March2020

7. The Details:
Coronavirus Business Loan Program
1
Congress is still adjudicating on how to distribute the $50 billion
request made by President Trump to small business owners.
The accurate details on how these EIDLs will vary from typical
EIDLs for other disasters still need to be assessed. It is likely
that business funding for affected businesses by COVID-19 will
come from other SBA loan programs. According to Senator
Marco Rubio, the IMPACT for Small Businesses Act of
2020 would include authority for $50 billion in loans through
the SBA 7(a) loan program for the rest of the financial year
2020, with provisions including (via NAGGL):

8. The Details:
Coronavirus Business Loan Program
2
Waiving upfront guarantee fees irrespective of loan size for all
borrowers
Waiving the lenders ongoing fee
Increasing SBA 7(a) loans guarantee up to 90%
Increasing Express maximum loan amount to $1 million from
$350,000, and after 1 year, lowers the maximum loan amount
to $500,000 rather than the existing $350,000.
Increasing flexibility to the Economic Injury Disaster Loans
(EIDLs)

9. The Details:
Coronavirus Business Loan Program
3
With this added flexibility and guarantee, lenders are more
likely to extend financing to small businesses, and waiving of
fees will make the loan process inexpensive for small
businesses. For funding up to $350,000, the legislation would
also not require the borrowers to submit tax returns, making
credit availability easier as well.
The bill has not passed yet, but businesses could still apply for
funding through the EIDL program.

10. The Details:
Coronavirus Business Loan Program
4
According to The SBA Business Stabilization Direct Loan
Program Act of 2020, SBA can make no-interest business
loans to affected businesses directly with repayment terms
under 10 years and would not be denied due to inadequate
collateral.
Keep in mind that the bill hasn’t passed as of in writing, and
details are subject to change.

11. In order to apply for EIDL funding, counties are
required to provide documentation on local
businesses that have been affected by the
Coronavirus pandemic to speed up the approval
process.
Washington State has started providing the SBA’s
Estimated Disaster Economic Injury Worksheet for
businesses form on their websites. Review this
Washington information sheet to acquire
information on how to submit this form. You can
also check the availability of this form with
your state and county websites. County officials
will be assigned to submit these forms when
requesting an EIDL declaration.
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Expediting the Process
of Coronavirus
Business Loan

12.  The influence of the
coronavirus pandemic on
small business community
and society is rising daily. It
still needs to figure out
when things will settle
down, and meanwhile,
small businesses need
every little assistance in the
form of coronavirus
business loans they can
get to prevent the injuries
felt by COVID-19.
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