Steps to Obtain SBA Disaster Relief Loan

Posted on Mar 24, 2020 by Jean Louise

3/30/20 UPDATED Steps to Obtain SBA Disaster Relief Loan

Businesses are facing unprecedented hardships due to the impact of the novel coronavirus (“Covid-19”). Our office has been working closely with our clients (business owners, landlords, tenants, lenders, borrowers, etc.) to provide guidance during this time. Although every situation is unique, one issue that is consistent for nearly every business owner through this crisis is the significant drop in revenue. This results in a waterfall of issues for business owners who are having difficulties staying operational. The United States Small Business Administration (“SBA”) is providing support to business owners suffering a substantial economic injury in the form of low-interest federal disaster loans for working capital.

The SBA has declared the Covid-19 pandemic a “disaster” and businesses in many states and counties are eligible for relief with a federal disaster loan. Oklahoma and Texas are among the many states eligible for the federal disaster loan. Applicants may apply for up to $2,000,000.00  to assist business owners to overcome the temporary loss of revenue they are currently experiencing. The SBA is lending these funds at a 3.75% interest rate to small businesses and a 2.75% interest rate to non-profit organizations. The SBA offers long-term repayment plans (up to 30 years) to allow borrowers to repay the loan over a feasible period of time. Applicants are also eligible to receive a $10,000.00 Economic Injury Disaster Loan advance. The advanced funds will be made available within three days of a successful application and the advanced funds will not have to be repaid. The disaster relief loans may be used to pay operating expenses that cannot be paid due to the impact of the Covid-19 pandemic. The loan amount and term are determined by the SBA after reviewing your application.

Applicants may file for relief online, in-person, or by mail. We recommend filing online at The SBA will then review the economic injury sustained by the business and allocate a loan amount after analyzing the application. In reviewing the application, the SBA considers the applicant’s credit, the financial position of the business, the business’s potential to accumulate funds necessary to operate, and the estimated loss incurred or that will be incurred. A loan officer will then contact the applicant to obtain all outstanding information. The SBA’s typically make their decision within 3 weeks of the application being processed; however, due to Covid-19, we expect the SBA to likely receive an increase in applications which will result in a longer processing period for applicants. Therefore, we urge our clients in need of assistance to apply for a disaster loan as soon as possible.

Navigating through the SBA website can be difficult at times. A step-by-step tutorial on how to complete your disaster relief loan application below:

Step 1: Visit

Step 2: In the first large box, choose a description that describes your business. Many applicants will fall under the first category. In the second large box, review and check all of the boxes. If an applicant is unable to check all of the boxes in this section, the applicant is not an eligible entity.

Step 3: Fill in the business legal name, trade name, EIN/SSN, and organization type. Select whether the applicant is a non-profit organization or franchise and fill in the gross revenues and cost of goods sold for the twelve (12) month period prior to the date of the disaster. Fill in the business address, contact information, date of establishment, and ownership date. Select the business activity, detailed business activity, and enter the number of employees.

Step 4: Enter the “Business Owner’s Information”

Step 5: Answer three (3) of the “Additional Information” Yes or No questions, enter the information of anyone who assisted in completing the application, if applicable. Select the box for “I would like to be considered for an advance of up to $10,000.00.” Enter your Bank Name, Account Number, Routing Number, and certify the information given was truthful


We understand that this is just one option in moving forward through this extraordinary circumstance. We urge you to initiate the conversation with your current lenders, landlords, and creditors as soon as possible. In this time of need, we must all work together to find amicable solutions. If you find yourself in need of any assistance, please contact Krishan Patel at or any member of our team.