As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27, 2020, the United States Small Business Administration has opened the Economic Injury Disaster Loan Program to qualified entities who have been impacted by the COVID-19 (Coronavirus) pandemic. In this blog, we outline who is eligible, the details of the loan, and how to apply.


  • Type of Entity
    • Businesses with no more than 500 employees
    • Nonprofit organizations
    • Sole proprietors
    • Cooperatives
    • Employee Stock Ownership Plans
    • Tribal Small Business Concerns
    • Small agricultural cooperatives
  • Status
    • Must have been in business on January 31, 2020
  • Size
    • SBA affiliation rules (13 CFR 121.103) apply to the computation of the number of employees of the “business concern” or other entity participating in the program. The SBA follows general principals of affiliation, finding affiliation when one business controls (50% or more of the stock) or when a third-party controls multiple businesses. The SBA considers the totality of the circumstances when determining whether affiliation exists.
      • The 500-employee limit counts full-time, part-time, or another basis as one employee each.
      • The SBA has issued a table that lists each NAICS code and defines small businesses based either on receipts or number of employees. For some codes, more than 500 employees are allowed.

Maximum Amount of Loan

  • Up to $2,000,000
    • Based on the extent of “injury”
    • Includes an advance “grant” of up to $10,000 that is to be issued three days after your application is processed.
      • This amount does not need to be repaid if the loan is denied.
    • No collateral is required on loans up to $25,000
      • Loans of over $25,000 will likely require a lien of some sort.
    • There is no personal guarantee on loans under $200,000.

Application Process

  • The application takes 5-10 minutes to complete and requires a limited amount of financial data.
  • Loans may be approved based solely on the credit score of the applicant (with no tax returns) or the SBA may use alternative methods.
  • Click here to visit the application webpage.

Allowable Use of Funds

  • Any purpose for a loan made under 15 U.S.C. 636(b)(2) including providing sick leave, maintaining payroll, increased material costs, making rent or mortgage payments, repaying obligations that cannot be met due to revenue losses.

Terms of the Loan

  • Repayment is based on ability
  • The loan is not to exceed 30 years
  • Interest Rates: 3.75% for Businesses, 2.75% for Non-profits.
  • Personal Guarantee waived on loans of no more than $200,000, otherwise, standard SBA personal guarantee requirements apply.

If you have questions regarding the SBA’s Economic Injury Disaster Loan Program, please reach out to your personal Sciarabba Walker contact or email us at