SBA Disaster Business Loan Process

The SBA is currently working directly with states to provide targeted, low-interest Economic Injury Disaster Loans to businesses and not-for-profits that have been severely impacted by the COVID-19 pandemic and to help overcome the temporary loss of revenue. Small businesses can receive up to $2 million in disaster assistance loans in certain eligible areas.

The following is a summary of the loan eligibility and the process for an SBA Disaster Business Loan:

• The business must be located in a Current Disaster Declaration Area to qualify. Click here for the latest update.
  
  
• The business must qualify as a small business. For it to qualify, it must meet the requirements for maximum number of employees or maximum revenue. Click here for the requirements for your specific industries. 
  
  
• The loan process is a three-step process. The first step in the process is to apply online, in-person, or by mail. The following forms will be needed: 
  
  
  • For all applications, excluding not-for-profit organizations, the following items must be submitted:
    
    
    • This application (SBA Form 5), completed and signed. 
      
      
    • Tax Information Authorization (IRS Form 4506T), completed and signed by each applicant, each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has greater than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
      
      
    • Complete copies, including all schedules, of the most recent federal income tax returns for the applicant business; an explanation if not available.
      
      
    • Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20 percent or more of the applicant business, and each general partner or managing member. 
      
      
    • Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).
      
      
  • Additional information may be necessary to process your application. If requested, please provide within 7 days of the information request:
    
    
    • Complete copy, including all schedules, of the most recent federal income tax return for each principal owning 20 percent or more, each general partner or managing member, and each affiliate when any owner has more than 50 percent ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management. 
      
      
    • 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 for will generally be required when requesting an increase in the amount of economic injury.
      
      
  • Step two of the process is the property verification, loan processing, and Decision by the SBA.
    
    
  • The final step is the loan close and funds disbursed.

RESOURCES:

Disaster Loan Assistance

Apply For A Disaster Loan(Complete your disaster loan application online.)

Disaster Loan Application Paper Forms

Coronavirus (COVID-19): Small Business Guidance & Loan Resources

Current Disaster Declarations (Locate disaster areas by state and territory. You must be in an SBA declared disaster area to be eligible for SBA disaster assistance.)

Disaster Loan Assistance - Login

Small business Size Standards Used To Define Small Business Concerns by industry NAICS codes

SBA Loan Three Step Process