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The US Senate, on March 25, 2020, unanimously passed the (CARES) Act of 2020. Ths bill, with more than $2 Trillion in relief and $350 billion for small business, if enacted, would represent the 3rd phase of legislation meant to help companies and families affected by the the recent outbreak.

According to NBCNews, “WASHINGTON — The Senate overwhelmingly passed a massive $2 trillion stimulus package late Wednesday that’s meant to soften the economic blow of the pandemic for American workers and businesses.”

Small businesses will receive direct help via $350 billion for SBA loans that use an expedited process—administered by private financial institutions—to cover payments for rent/mortgage, utilities and payroll. These loans will be converted into grants at the end of the year if used for intended purposes.

SBA Disaster Loan Requirements

According to SBA, “Small business owners in all U.S. states, Washington D.C., and territories are currently eligible to apply for a long-term, low-interest loan . The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.”

SBA disaster loan requirements include:

Declared Distaster Location

To get qualified for a SBA disaster loan your business must operated within a declared disaster location. Check here for SBA declared disaster zones.

Credit Score

To qualify you will need to pass a credit check. If you do not have good credit, the SBA will consider other factors such as income, rental history, etc.

Ability to Repay

The SBA considers your ability to repay the loan back in full.

Form of Collateral

If you are applying for a loan of more than $25,000, SBA might require collateral to complete your loan process.

SBA Disaster Loan Terms

The information below will give you a quick looks at the terms and rates for the Business Physical Disaster Loan and the Economic Injury Disaster Loan as provided by MerchantMaverick.

Borrowing Amount: $2 million Maximum

Term Lengths:

  • 30 years Maximum if credit isn’t available elsewhere
  • 7 years Maximum if credit is available elsewhere

Interest Rates:

  • 4% Maximum if credit is not available elsewhere
  • 8% Maximum if credit is available elsewhere


No fees from the SBA; possible fees from lawyers or outside agencies

The SBA disaster loan provides working capital to applicants that are eligible. For faster loan processing the business applying must have operated for at least one year before the disaster. Eligibility for the loan must consider compensated from other sources to offset the economic injury. Other sources include but aren’t limited to: (1) grants or other reimbursements (including loans) from private organizations or government agencies, and (2) claims for civil liability against other government entities, organizations, or individuals.

Additional Information May Also Be Required

  • 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.

Eligibility for SBA Disaster Loan


Am I eligible for a SBA disaster loan?

Yes you are eligible for the SBA disaster loan if you run a small business with less than 500 employees or:

  • Are a small business that meets the size standard of SBA
  • Are a 501(c)(3) with less than 500 employees
  • You are an individual operating as a sole proprietor
  • You are an individual operating as an independent contractor
  • You are an individual who’s self-employed who regularly carries on any business or trade
  • You are a Tribal business concern and meets SBA’s size standard
  • A 501(c)(19) Veterans Organization that meets the SBA size standard

In addition, some special rules may make you eligible:

  • If you are in the accommodation and food services sector (NAICS 72),
    the 500-employee rule is applied on a per physical location basis
  • If you are operating as a franchise or receive financial assistance
    from an approved Small Business Investment Company the normal
    affiliation rules do not apply

SBA Disaster Loan Assistance

The SBA is offering low-interest disaster loans for businesses of all sizes, homeowners, renters, and non-profit organizations.

SBA Disaster Loan Process

  1. Download the forms on the SBA website below
  2. Fill out your information
  3. Upload your application forms on this page
  4. If you choose to mail your application, then see Mailing Instructions below

U.S. Small Business Administration Processing and Disbursement Center

14925 Kingsport Rd. Ft. Worth, TX 76155-2243

How To Apply for a SBA Disaster Loan

According to Fundera, there are 3 ways to to apply for a SBA disaster loan:

  1. Online application: You can use the online application to apply for the SBA disaster loan
  2. Mail your application: You can also mail in your application by sending it to 14925 Kingsport Rd. Ft. Worth, TX 76155-2243
  3. Fill out your application in-person: You can also apply in-person at a Disaster Recovery Center to receive assistance from an SBA rep.

Do I qualify for a SBA Disaster Loan?

SBA Disaster Loans Interest Rate

According to FEMA, “Interest rates for SBA disaster loans can be as low as 1.813 percent for homeowners and renters, 3.58 percent for businesses and 2.5 percent for private nonprofit organizations, with terms up to 30 years.”

  • 4% Maximum if credit is not available elsewhere
  • 8% Maximum if credit is available elsewhere


No fees from the SBA; possible fees from lawyers or outside agencies

SBA Disaster Loan Application

According to SBA’s disaster loan application, “When you apply for an SBA loan, you may use an attorney, accountant, engineer, appraiser or other representative to help prepare and present the application to us.”

Download the SBA application forms below.

  1. Business Loan Application (Form 5) (en Español)
  2. Home or Sole Proprietor Loan Application (SBA Form 5C) (en Español)
  3. Economic Injury Disaster Loan Supporting Information (Form P-019)

Additional forms may be required by your Disaster assistance loan officer.

What Can SBA Disaster Loan Be Used For?

According to Divvy, SBA disaster loans can be used for:

  • Fixed debts
  • Employees payroll
  • Outstanding Bills and invoices
  • Business adaptations (mobile/online options, delivery, etc.)

An SBA disaster loan can be used to cover losses and costs that wouldn’t have occurred except for the quarantines, social distancing, complications, and other necessary measures made by the recent disaster.

According to SBA, “An SBA disaster loan can be used to repair or replace personal property, real estate, equipment and machinery, and inventory and business assets. SBA says, “Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury.”

4 types of disaster loans

SBA Disaster Declarations

View a list of the current SBA disaster declarations.

SBA Disaster Loan Credit Requirements


The credit score needed for a SBA loan is 620 to 640+. According to Fundera, “Generally speaking, SBA loan credit score minimums typically fall somewhere around 620-640+.”

  • The credit score needed for a SBA 7(a) Loans is 640+
  • SBA 7(a) Express Loans: 640+
  • SBA CDC/504 Loans: 680+
  • SBA CAPLines Program: 660+
  • SBA Export Loans: 660+
  • SBA Microloans: 620-640+

SBA Disaster Loan Forgiveness Program


Can an SBA Loan be Forgiven?

Yes, borrowers of SBA disaster loans are eligible for loan forgiveness. A borrower of an SBA Loan is eligible to have their loan forgiven up to the amount the borrower spent on the items below during the 8-week period starting on the date of loan origination:

  • The cost of payroll
  • Interest on the mortgage obligation incurred in the ordinary course of business
  • Leasing agreement rent
  • Utility payments, (internet, telephone, transportation, water, gas, electricity)
  • Any additional wages paid to your employees who are normally tipped
  • Loan forgiveness can’t exceed the principle
  • The loan forgiveness cannot exceed the principal.

The loan forgiveness amount calculated above will get reduced if you reduce the number of employees you have working or if you reduce wages paid to employees by 25% or more.

Stimulus Package Help for Small Business

According to MarketWatch, “Small businesses will have access to $350 billion in forgivable loans, but they have to meet certain requirements.”

Need Help Filling Out Paperwork to Make Sure You Get The Money?

Why Reinvent the wheel? The licensed attorneys at Canterbury Law Group have already perfected the means by which your company can timely obtain your share of the federal rescue dollars.  Time is money, and by hiring Canterbury Law Group, you assure your application will be done on time, and correctly.

Contact Canterbury Law Group today to get help processing your application correctly. [email protected] or 480-240-0040

Will I Get Money From the Government Stimulus Check?

Will I get money from the Bail-Out/Stimulus Bill? Right now, Democrats and Republicans are battling over the specific provisions of the Stimulus Plan.  President Trump proposed a plan that would provide $250 Billion in Direct Payments to Americans.  The debate centers on the timing of payments and whether the payments should be a set amount or be flexible based on circumstances. Learn more about the Government Stimulus Check.

SBA Disaster Loan Pros and Cons


According to Divvy, SBA disaster loan pros and cons include:

SBA Disaster Loan Pros

  • Pro: Easy application process
  • Pro: Fast approval
  • Pro: Fast dispursement
  • Pro: Low APR

SBA Disaster Loan Cons

  • Con: May require specified revenue or high credit score
  • Con: Short term lengths
  • Con: Increased repayment frequency
  • Con: Additional fees
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