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Coronavirus SBA Disaster Loan Broker: Help Applying for COVID-19 SBA Disaster Loans

SBA Disaster Loan Program Brokers

As you may know, the Coronavirus has had a detrimental effect on the U.S. and world economy. With the spread of the epidemic, businesses across the nation are being affected greatly both directly and indirectly. Restaurants have been ordered closed, and those that are still open are seeing a dramatic drop in sales and revenue – especially if they are dine-in only, and lack strong take-out and delivery sales. Orders to shelter-in-place are only allowing essential movements, forcing workers to stay at home and work, or worse: causing massive layoffs and a skyrocket in applications for unemployment benefits. At the time of this writing in mid-March 2020, nearly 17% of workers have either been laidoff, or seen their work hours cut dramatically. All of this has caused the economy to essentially dip into recession, if not an outright depression. Because of this, businesses are hurting and in need of cash for working capital to stay afloat but, sadly, many lenders have either greatly reduced their lending, or stopped lending entirely – leaving small businesses without access to cash to help meet their needs. In an attempt to help rescue small businesses across the nation, the SBA has been provided with $50 billion in funding to help provide business loans with low-interest, long-term loans to provide the liquidity and working capital to help weather the storm through the use of the SBA Disaster Loan Program. In this article we will look at the SBA Disaster Loan Program, and provide guidance on how our business loan brokers can help you apply and navigate the process to help fund your business.

Disaster Loan Program Overview


The disaster loan program was created by the Small Business Administration to offer affordable federal disaster financing to help individuals (both homeowners and renters) and businesses of all sizes (including both for-profit and nonprofit) that are suffering major economic injury by events in areas that have been declared disaster areas. Once an area has been declared a disaster area by a state governor, they then will then request the U.S. Small Business Administration to provide an Economic Disaster Loan declaration (under the Coronavirus Preparedness and Response Supplemental Appropriations Act).

The Presidential declaration relating to the COVID-19 SARS-CoV-2 virus (which led to the Coronavirus Pandemic) allows the U.S. Small Business Administration to begin releasing low-interest economic aid to small businesses, agricultural co-ops, aquaculture companies and nonprofits affected by the Coronavirus (COVID-19) disaster to help these businesses meet their working capital and cash-flow needs or and other usual operating expenses through the epidemic’s recovery period. All businesses are eligible to use these funds if they have faced economic damage – so actual physical damage isn’t required.




  • Must be in a state that has been certified by the SBA as having suffered substantial economic injury – which requires the state’s governor to request such designation from the SBA. When the request is received by the SBA is issue authority provided by the Coronavirus Preparedness and Response Supplemental Appropriation.
  • Loan must be used for working capital purposes including paying debt, making payroll and paying other bills that were unable to be paid due to the Coronavirus (COVID-19 SARS-CoV-2) outbreak.
  • Credit must not be available elsewhere. If such credit is available elsewhere, the business will not be eligible for financing under the SBA Disaster Loan Program.


Rates and Terms


Rates Terms
For-Profit  3.75% Up to 30 years
Nonprofit  2.00% Up to 30 years


Application Process


  • 1) the business owner must apply directly through the SBA. Applicants are encouraged to apply online, but they can also apply in-person, by mail, or by calling 1‐800‐659‐2955.
  • 2) An SBA loan officer will check the business’s eligibility and request the documents needed to underwrite the loan. The process is designed to take around 3 weeks to complete.
  • 3) Once an application is approved, the loan officer will then send the business owner closing documents, and once signed an initial dispersal of $25,000 is made to the business, with future dispersal made soon after.


Documents required


  • Business Loan Application — (SBA Form 5) completed and signed by business applicant.
  • IRS Form 4506-T — completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
  • Business tax returns — 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 (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
  • Schedule of Liabilities — listing all fixed debts (SBA Form 2202 may be used).

Additional information that may be necessary to process your application:

  • Personal tax returns — Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  • Year-end Profit and loss statement — 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.
  • Current P&L — year-to-date profit and loss statement.
  • SBA form 1368 — providing monthly sales figures


Alternative Disaster Loan Options


SBA 7(a) program — Largest SBA loan program provided by lending partners (large banks, small banks, community banks and credit unions) in which the lender provides funding, and the SBA agrees to cover the majority of the lender’s losses should the borrower fail to repay the loan. Uses for SBA 7(a) loans include: working capital; expansion; new construction; purchase of land or buildings; purchase of equipment, fixtures; lease-hold improvements; refinancing debt for compelling reasons; seasonal line of credit; inventory; or starting a business.

SBA Express — loan program provides loans up to $350,000 for no more than 7 years for term loans, and 3 year interest-only lines of credit that have an option to revolve. The SBA has a turnaround time of 36 hours for approval or denial of a completed SBA Express loan application. The uses of proceeds are the same as the SBA 7(a) standard loan program

SBA Microloan — program involves making loans through nonprofit lending organizations to underserved markets. Authorized use of SBA Microloan proceeds includes working capital, supplies, machinery & equipment, and fixtures (does not include real estate). The maximum loan amount is $50,000 with the average loan size of $14,000.

Bank loans – provide conventional business financing with rates that are similar to SBA 7(a) loans, that can be used for a variety of uses including purchases, working capital, equipment financing, refinancing and consolidating of debt, making payroll, paying bills and just about every other business use.

Mid prime loans – provide businesses with access to quick yet affordable financing. While the rates are a bit higher than SBA 7(a) loans, and the terms are shorter than standard SBA loans, the application and funding process can be completed in as little as a week, with much less paperwork and underwriting. Additionally, the credit requirements for mid prime business loans are lower than SBA loans, and no collateral is required.

Cash advances – Provides businesses in need of fast financing with the ability to receive funds in as few as 24 hours, if not the very same day they apply. Documentation requirements for cash advances are much fewer than all of the business financing options, with the business owner only needing to provide a signed application and bank statements to get an offer, and some other verification documents to have funds wired to their account.


The SBA application and funding process, in theory, should be completed in just three weeks. But, historically after a disaster, the program has taken as long as 5 months on average to complete funding for small businesses. Additionally, only around 11% of SBA Disaster Loans have gone to business loans in the past. Add in the fact that we are facing an unprecedented situation due to the Coronavirus (COVID-19) essentially shutting-down whole sectors of the economy, and the rush to apply for funds may very well overwhelm the limited number of SBA loan officers available to help process SBA Disaster loans. That is why it is key to apply for the SBA Disaster Loan Program quickly to get to the front of the queue, as it is also important to make sure the SBA application is filled-out correctly – as an improperly completed application will cause the borrower to start over again from the back of the line. So if you are a business looking to apply for an SBA Disaster Loan, or a business that was declined for the program, and need assistance securing financing, please reach-out to one of our SBA Disaster Loan Brokers, and we will help you navigate the funding process.

Talk to a SBA Disaster Loan Program Broker

About the author
Domonique Cox

Domonique is a Minnesota native that earned her bachelors from The University of Arizona with a degree in English and Film Studies. Though books and writing are not her only interest, you can find her engaging in nutritional sciences, environmentalism, vegan cuisine, filmmaking, old school dancing, tennis, running, sound engineering, and enjoying satirical dark comedies or listening to the poetic lyrics of Bob Dylan. She is now based in Los Angeles as a content writer for GUD Capital where she spends her spare time honing her writing and directing skills. 

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