Disaster Relief Loan

Are you a small business that has been directly impacted by COVID-19?

Many companies have had to close their doors during this time to protect the safety and health of their employees and patrons. Here at HR Wise we are constantly researching how we can help our clients get through this difficult time. We are looking for solutions and resources. If you are a small business owner whose company has directly been affected by this pandemic then The Small Business Administration may have a solution that fits your company’s needs.

They have created a loan specific to this pandemic to provide some relief to businesses who have fixed debts to pay, payroll, accounts payable and bills that could have been paid had this disaster not occurred. With the use of the Small Business Administration we have created a simplified version of how to apply for loan, the eligibility requirements and other necessary information.

Eligibility Requirements

Small Business Administration Loans are available to small businesses, small agricultural cooperatives, small agricultural businesses and most private non-profit organizations. This includes:

  • Businesses directly affected by the disaster 
  • Businesses that offer services directly related to the busniesses in the declaration
  • Other businesses indirectly related the industry that are likely to be harmed by losses in their community

Eligible Small Business Examples:

Ineligible Entities:

Criteria For Loan Approval

How Much You Can Borrow

Once you have reviewed the eligibility requirements and have determined that you obtain the criteria needed to be approved for the loan, now is the time to evaluate whether or not this loan will meet your specific needs. This will be based on how much assistance your business needs, what you plan on using the loan for and whether or not you are willing to provide collateral for the loan.

 ** REMINDER: Eligibility for working capital loans are based on the size (must be a small business) and type of business and its financial resources

If you are eligible:

  • You can qualify for loans up to $2 million
  • Interest rates: 3.75% for small businesses and 2.75% for non-profit organizations
  • TERMS: Up to 30 years 


  • Loans over $25,000 require collateral
  • SBA can take real estate as collateral when available
  • SBA will NOT decline a loan for lack of collateral but requires borrowers to pledge what is available 

How May You Use the Loan Funds?

Can be used to Pay:

  • Fixed Debts
  • Payroll
  • Accounts Payable 
  • Bills that could have been paid had the disaster not occurred

Cannot be used for:

  • To Replace Lost Sales
  • Profits
  • For Expansion

Basic Filing Requirements

Other Information May Be Rquested Such as:

  • 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.)

How To 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 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.

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