SBA Economic Injury Disaster Loan Program Loan Overview

Below are some Frequently Asked Questions related to the SBA’s new disaster loan program. This information is evolving and will be updated as new information is available. 

This loan program is operated directly by SBA. NO small business owners should pay anyone or company to get assistance in completing this application

Q. Can I get help with the application?

Yes. SBA is offering free assistance to help complete applications. Register by following these steps:

    • Visit www.tsbdc.org
    • Select “Request Free Advising”
    • Select “Local Advising” and Choose Your County
    • Complete the Requested Information (it’s a SBA Form 641 for confidential counseling)
    • A business counselor will contact the firm within 48 hours to set an appointment or start the process over the phone and/or via online video conferencing
Q: What types of small businesses can apply?

Examples of eligible industries include but are not limited to the following: hotels, recreational facilities, charter boats, manufactures, sports vendors, owners of rental property, restaurants, retailers, souvenir shops, travel agencies, and wholesalers.

Q: How much can I borrow?

Eligible entities may qualify for loans up to $2 million

  • Interest rates for 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.
Q: How can loans funds be used?

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.

Q: What are the collateral requirements?
  • Economic Injury Disaster Loans over $25,000 require collateral.
  • SBA takes real estate as collateral when it is available.
  • SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available.
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Q: What are the basic filing requirements?

Completed SBA loan application (SBA Form 5 or 5C).

  • 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).

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. (This is especially important for Economic Injury Disaster Loans.)
Q: Are there any ineligible entities?

At this time the following are considered ineligible. This information is subject to change.

  • 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 for EIDL assistance.
  • Religious Organizations
  • Charitable 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.)
Q: How can businesses 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.

If you who would like free assistance with completing your business applications with SBA; please register by following these steps:

  • Visit www.tsbdc.org
  • Select “Request Free Advising”
  • Select “Local Advising” and Choose Your County
  • Complete the Requested Information (it’s a SBA Form 641 for confidential counseling)
  • A business counselor will contact the firm within 48 hours to set an appointment or start the process over the phone and/or via online video conferencing
Q: After the paperwork is submitted, what’s next? 
  • An email confirmation that your application has been submitted
  • An email letting you know that your application is under review.
  • An email or phone call from an SBA representative.
  • Have your monthly expenses and financial projections ready (your local SBDC can help with this)

Additional information for Small Business Owners to know.

The following information will be required of the applicant:

  • Business information
  • Contact information and social security numbers for all applicants
  • Employer Identification Number (EIN) for business applicants
  • Insurance information
  • Financial information (e.g. income, account balances and monthly expenses) – Know the total amounts and payments due for debts that will be paid over the next 10 months or longer (i.e. mortgages, student loans, credit cards, etc.)

Additional Forms for assistance:

U.S. Small Business Administration Disaster Business Loan Application

Economic Injury Disaster Loan (EIDL), and Military Reservist Economic Injury Disaster Loan (MREIDL)

Instructions for Completing the IRS Tax Authorization Form 4506-T

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Visit our Business Resources Page for more information.

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