The SBA is currently working directly with states to provide targeted, low-interest Economic Injury Disaster Loans to businesses 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 process for a SBA Disaster Business Loan:
The business must be located in a Current Disaster Declaration Area. Click here for the latest update.
The business must qualify as a small business. For new automotive dealerships, the qualification is 200 employees or less. For used car dealers, it is revenue of $27M or less. Click here for the requirements for other industries.
The loan process is a three-step process. The first step in the process. Apply online, in-person or by mail. The following forms will be needed:
For all applications, excluding non-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 needed 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.