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Step-By-Step Guide to Apply and Get Approved For an SBA COVID-19 Disaster Loan

Step-By-Step Guide to Apply and Get Approved For an SBA COVID-19 Disaster Loan


The instructions in this blog are for the first round of Economic Injury Disaster Loans (EIDL).

The link to apply for the updated HR 748 CARES Act EIDL is:

We have not written instructions for how to apply for this loan yet.


COVID-19 has wreaked serious havoc on the US economy. Small business owners are faced with mandated closures, decreased revenue, kinks in the supply chain, and are faced with potential furloughs and layoffs for their employees. While COVID-19 continues to sweep the nation, business owners must immediately find ways to stay afloat and keep the wheels turning. 

In this guide we uncover what you need to do to successfully apply for and receive a COVID-19 disaster loan, administered by the SBA.

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What is a COVID-19 Disaster Loan?

The Small Business Administration (SBA) is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).  Each state must request Economic Injury Disaster Assistance in order for the state to receive funds provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President.


This loan has special benefits including:

  • No Payments for 12 Months
  • No Cost to Apply
  • No Obligation to Take the Loan


You can use the loan to pay:

  • Accounts Payable
  • Fixed Debts
  • Payroll
  • Other bills that can’t be paid because of the disaster’s impact. 


Additionally, if you require additional funds, you may be able to increase the loan amount even after you have received funding. However, be prepared to provide additional documents to the SBA before getting your second round of funding. 



Where to Apply for a COVID-19 Disaster Loan

The SBA makes it (sort of) easy to apply online and be in touch. The easiest way to apply is online, though there has been a lot of downtime on their website. Be patient and go back to apply and check on your application often, to be sure that you can get funded. The funds are not unlimited, so please put your name in the hat quickly.



The Deadline to Apply is December, 21st 2020.


Complete + Email/Mail/Upload

Required Forms Additional Forms
SBA Form 5 SBA 159 D 
SBA 5C (if you are a Sole Prop) SBA Form 1368 
SBA Form P-019 SBA 413 D
  SBA Form 2202 


FAQ: How do I fill out Form 413D, the personal financial statement?


Call the SBA: 800-659-2955


Email the SBA:


Mail Completed Application: 

US Small Business Administration

Processing and Disbursement Center

14925 Kingsport Road

Fort Worth, TX 76155



SBA COVID-19 Disaster Loan Limits

The SBA has set the loan limits as $25,000 (no collateral) to $2,000,000 (with collateral) with a maximum rate of 3.75% for For-Profit businesses. If your business is a major source of employment in your area, the SBA has the authority to waive the $2 Million limit, but this will be reviewed on a case-by-case basis. Also, the SBA may not deny a larger loan even if you do not have collateral- apply and work with an SBA rep to see what your business may qualify for. 

Typically your loan will be based on your operating expenses and you may be able to qualify for up to 6 months of operating expenses as your loan amount. This will be reviewed on a case-by-case basis and will depend on: 


  • Credit Worthiness- Since the SBA guarantees loans, they want to be sure that you can pay this back
  • Ability to Pay- Once the dust settles, will your business be able to support repayment
  • Eligibility- The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.


If you do not already have your financials prepared, you will want to take care of this before you apply as this will be part of the application process.



Prohibited Businesses

Typically the following businesses are prohibited from receiving SBA disaster funds: 

  1. Any business where gambling is >⅓ of Annual Gross Revenue
  2. Casinos and Racetracks where main purposes is gambling
  3. Sexually Oriented Businesses
  4. Pawn Shops if >50% of revenue is derived from interest
  5. Religious Organizations
  6. Investment/Lending Companies
  7. Charitable Non-Profits (Private Non-Profits are allowed)
  8. Speculative Activities
  9. Agricultural Enterprises (covered by Dept of Agriculture)
  10. Cannabis companies


>>>>>A complete list of prohibited businesses is located here.<<<<<



SBA COVID-19 Disaster Loan Checklist

The SBA recommends prospective applicants assemble their documents required for the loan application, allowing them to more quickly move through the loan review and approval process. Below is the list of the documents prospect applicants should assemble for upload into the SBA Economic Injury Disaster Loan (EIDL) site : 

  • Organizational Documents: Articles of Incorporation, Articles of Organization (for LLC), or Registration of Sole Proprietorship, EIN Letter
  • Substantiation: Written statement justifying the nature and scope of economic injury and how/why nature of business was adversely impacted by the Coronavirus (one page/no more than two)
    • Loss of Revenues
    • Cancelled contracts
    • Interrupted supply chain
  • AP and AR: Current Accounts Payable and Accounts Receivable Aging as of date of filing for the loan
  • Income Taxes: Three (3) years’ 1040 Federal Income Tax Returns for the business & owners
  • Financial Statements: Three (3) years’ company FYE Income Statement and Balance Sheet and latest YTD Financial Statements
  • Debt Tables: Company and Owners’ Debt Schedule Tables
  • Cash Flow: Monthly two (2) years’ cash flow projections
  • Sales History: Three (3) years’ Monthly Sales History up to date of filing for loan
  • Credit Reports: Current copies of owners’ credit reports from the three (3) credit bureaus with explanations for any negative reports
    • Experian
    • Equifax
    • TransUnion
  • Required SBA Forms:


Disaster Business Loan Application- SBA Form 5

Click to View the SBA Form 5 Online

SBA Form 5 is the loan application that will provide the SBA information on you, your business, your business partners, and any other businesses you may own a substantial interest in. If you must answer yes to any questions regarding your criminal or credit history, be prepared to offer a complete and  thoughtful explanation.


Box #



Applying for: Economic Damage


Organization Type


Legal Name of Business


Federal EIN


Trade Name


Business Phone Number


Mailing Address


Damage Property Address (can be same as #7)


Contact Person for Loan


Alternate Ways to Contact You


Business Activity- What do you do?


Number of Employees (Pre Disaster)


Date Established


Current Management Since


Amount of Estimated Loss- Real Estate, Machinery,  Inventory, Leasehold Improvements (greyed out)


Do you own more than 50% or are you a Managing Member or General Partner?


Owner Information (for each proprietor, member, limited partner who owns >20%, or stockholder who owns >20% voting stock)

  • First Name, Middle Name, Last Name
  • Title 
  • % Ownership
  • Email
  • SSN 
  • Marital Status
  • Date of Birth
  • Place of Birth
  • Phone Number
  • US Citizen- Yes/No
  • Mailing Address
  • Confirmation that owner has >50%


Has the business or listed owner ever been involved in a bankruptcy or insolvency proceeding?


Does the business or listed owner have any outstanding judgements, tax liens, or pending lawsuits against them? 


In the past year, has the business or a listed owner been convicted of a criminal offense committed during and in connection with a riot or civil disorder or other declared disaster, or ever been engaged in the production or distribution of any product or service that has been determined to be obscene by a court of competent jurisdiction? 


Has the business or a listed owner ever had or guaranteed a Federal loan or a Federally guaranteed loan?


Is the business or a listed owner delinquent on any Federal taxes, direct or guaranteed Federal loans (SBA, FHA, VA, student, etc.), Federal contracts, Federal grants, or any child support payments?


Does any owner, owner's spouse, or household member work for SBA or serve as a member of SBA's SCORE, ACE, or Advisory Council?


Is the applicant/co-applicant currently suspended or debarred from contracting with the Federal government or receiving Federal grants or loans


Are you presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction


Have you been arrested in the past six months for any criminal offense


For any criminal offense - other than a minor vehicle violation - have you ever: 

  • Been convicted, 
  • Plead guilty,  
  • Plead nolo contendere, 
  • Been placed on pretrial diversion, or 
  • Been placed on any form of parole or probation (including probation before judgment)?

Is this for physical damage only? (greyed out)


Is anyone assisting you with filling out the form? Provide their info. 


Affiliate Businesses

  • Name
  • EIN
    Entity Type
  • % Ownership
  • Title
  • Address


You will need to sign a 4506-T for the affiliate business so the tax returns can be requested.



Personal Financial Statement- SBA Form 413

Click to View the SBA Form 413 Online

SBA Form 413 provides the SBA a complete personal financial statement. You will need to have up to date information about everything you own, aka Assets, and owe, aka Liabilities. 

You will also need to provide a complete breakdown on all of your sources of income, including your salary, investment income, and real estate income. If you have co-signed on any loans or have any legal claims or judgements against you, you will need to provide the amount here- and likely supporting documentation later. 




Cash on Hand & In Banks

Accounts Payable

Savings Accounts

Notes Payable

IRA + Retirement Accounts

Installment Accounts

Life Insurance

Loans Against Life Insurance

Stocks and Bonds

Mortgages on Real Estate

Real Estate

Unpaid Taxes


Other Liabilities

Other Personal Property


Other Assets




Sources of Income

Contingent Liabilities


Cosigned Loans

Net Investment Income

Legal Claims and Judgements

Real Estate Income

Provision For Federal Tax

Other Income

Other Special Debt


Schedule of Liabilities- SBA Form 2202

Click to View the SBA Form 2202 Online

SBA Form 2202 is for all liabilities that company owes. You should review your current balances and the original loan documents to complete this section. You may be required to provide statements and the loan documents as a condition of approval. 


Questions on SBA Form 2202

Name of Creditor

Original Amount

Original Date

Current Balance

Is the loan current (yes/no)

Maturity Date

Payment Amount

Paid per month or per year?

How was the loan secured? 



Economic Injury Disaster Loan Supporting Information - Form P-019

Click to View the SBA Form P-019 Online

SBA Form P-019 provides the SBA information on your past financial performance. You will spell out your Gross Revenue and Cost of Goods Sold, which will give them insight into your ability to repay. You can expect to provide your financials to support this information, so be sure you are ready to grab that from your accounting software. 


This form will need to be downloaded, completed, and uploaded in the SBA loan portal.


Questions on SBA Form P-019

Was the business in operation one year prior to the disaster?

Gross Revenues for the twelve (12) month period prior to the disaster

Cost of Goods Sold for the twelve (12) month period prior to the disaster

Rental properties (residential and commercial) only. Lost rents due to the disaster

Certify that you meet the size standards


There is a special note at the bottom of this form that notifies you that your small business must meet their size requirements. Be sure to validate your NAICS Code and check it against the size standards which are linked below

SBA Size Standard Tools

Find your NAICS Code Online Here

Find SBA Business Size Standards Here

Request for Transcript- 4506-T

Click to View the SBA Form 4506-T Online

The 4506-T will allow the SBA to request transcripts of your business and personal tax returns. Please know that you will need to have a signed 4506-T for the business, the owners, and any affiliate businesses. If any of the owners are married and filed a joint return, the spouse will need to sign the form to give their permission to request these transcripts. 

This form will need to be downloaded, completed, and uploaded in the SBA loan portal.


Box #



Name on Return

You will need to complete a 4506-T for you, for your business, and any affiliate businesses

1b SSN or EIN 
2a If joint return, enter your spouse's name 
2b If joint return, enter your spouse's SSN 
3 Current address

Previous address

If you have moved since you filed your last tax return

7 Mailing Address


This party's who will receive the form 

(U.S. Small Business Administration Office of Disaster Assistance)


Transcript Requested

1040, 1120, 1065, etc


Pre-checked box


Years or periods requested: 





Signatory attests that he/she has read the attestation clause and upon so reading declares that he/she has the authority to sign the Form 4506-T. 

Check this box

Sign Here

Enter Phone Number

Sign Form
Date Form


If joint return, spouse must:

Sign Form

Date Form



How to Prepare to Apply for a Disaster Loan

Before you apply for a COVID-19 SBA loan through the SBA, you need to have your finances in order. We highly recommend working with a qualified accountant (shameless Accountingprose plug) who uses an accounting software (shameless Xero plug) so that you can easily pull down your financial records. 

It will be absolutely impossible to complete this loan application and get funded without this information. Having up-to-date and accurate information provides the SBA figures to calculate your loan amount and repayment ability on. Additionally, frequently updating and reviewing your financials will give you a better chance of success when things pick back up. 


Do you need an amazing bookkeeper? I happen to know one... 


I want to work with someone who gets me



How is the SBA Disaster Loan Funded?

In a normal disaster, the SBA has historically approved and funded loans within 4 weeks. However, since this disaster is global, and affects nearly every business, the funding times are hard to project. You have a much better chance of getting approved and funded quickly if the information you provide in your application is accurate and complete. Take your time and be mindful when filling out each form. 

Historically, once a disaster loan is approved the SBA will fund the first $25,000 within 5 days, with the rest coming after that. Again, this pandemic is something that we have never seen before, so we can only hope for similar turn times. 

If you require additional funding, you will be able to adjust your loan at a later time, but be prepared to provide additional documentation to get your second round funded. 



SBA Resources


>>>>>Download the SBA COVID-19 Loan Guide written by the SBA <<<<<


Call the SBA: 800-659-2955


Email the SBA:


Mail Completed Application: 

US Small Business Administration

Processing and Disbursement Center

14925 Kingsport Road

Fort Worth, TX 76155


Need Help Completing the Application?

Free assistance with reconstructing financial records, preparing financial statements and submitting the loan application is available from any of SBA’s partners: Small Business Development Centers (SBDCs), SCORE, Women’s Business Centers (WBC), and Veteran’s Business Outreach Centers and local Chambers of Commerce.

For the nearest office:


Need help from a Small Business Superhero?

Click to Book a Free Consultation


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