Clyde Snow

US Small Business Administration Disaster Loan Assistance for COVID-19

by | Mar 19, 2020

The US Small Business Administration recently created a list of states and counties eligible for small business disaster assistance loans related to the COVID-19 outbreak. These loans offer “up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue” and “may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.”[1] “The interest rate for a small business is 3.75% and the interest rate for non-profits is 2.75%” with “long-term repayment [options]. . . up to a maximum of 30 years . . . based on each borrower’s ability to pay.”[2]

Currently, areas eligible for COVID-19 SBA Disaster Loans include the following States: California, Connecticut, the District of Columbia, Maine, Montana, Nevada, New Mexico, Rhode Island, Utah, and Washington.[3] Certain counties in Oregon, Idaho, Wyoming, Colorado, Arizona, Massachusetts, Texas, North Dakota, New Hampshire, Virginia, Maryland, and New York are also eligible.[4] Businesses should check the SBA’s Coronavirus Disaster Assistance page to determine which SBA area office can assist with their applications and for updated approved areas.[5]

To apply, businesses must provide the following:

  • A completed business loan application;
  • IRS Form 4506-T completed and signed by the applicant business, each principal owning 20% or more, each general partner or managing member, and for any owner who has more than a 50% ownership in affiliate business (including business parent, subsidiaries, and/or businesses with common ownership or management);·        
  • Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business (or an explanation if not available)
  • A Personal Finance 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; and
  • A Schedule of Liabilities listing all fixed debts (SBA Form 2202).[6]

    Upon receipt of the application, the SBA will review the applicant’s credit, estimate the total loss suffered by the business, and determine the applicant’s eligibility.[7] The SBA strives to reach a final decision on the loan within two to three weeks, but the applicant may receive an initial loan disbursement within 5 days of receipt of the signed loan closing documents, including up to $25,000 for working capital.[8]

    Marla Trollan, the director of the Utah District Office explained to KSL News that “[a]s long as [a business] can demonstrate that there is a resolved loss of revenue and economic injury as a result of the virus, they can basically submit an application for [a] disaster loan to the SBA.”[9]

    Businesses may apply online, and if doing so for assistance related to COVID-19, should select only Economic Injury on their application. Applications may be submitted at the following link:

    Business should check the SBA’s Coronavirus Disaster Assistance page to determine which SBA area office can assist them with their application at Please contact our office if you have any additional questions or concerns related to the operation of your business obligations and/or benefits that may be available to you during this unprecedented time.

    [1] U.S. SBA Disaster Assistance: Coronavirus (COVID-19), SBA Disaster Assistance in Response to the Coronavirus (2020),
    [2] Id.
    [3] Id.
    [4] Id.
    [5] Id.
    [6] U.S. SBA: Three Step Process: Disaster Loans (Aug. 2020),
    [7] Id.
    [8] Id.
    [9] Jason Lee, Utah small businesses fighting to survive statewide coronavirus shutdown, KSL (Mar. 17, 2020, 8:51 PM),

Sign up for our latest updates.

Recent Posts

Ripple Effect 156: All the Water Books!

Justin Scott-Coe, General Manager of Monte-Vista Water District, joins us to discuss his new Podcast and collaboration with Maven’s Notebook - the Water Shelf. The Water Shelf is the just the place for that certain co-hort of water lovers and book lovers. Justin talks...

Ripple Effect 155: Great Salt Lake Trust

Marcelle Shoop – Executive Director, and Adam Wickline of the Great Salt Lake Watershed Enhancement Trust join us to talk about the Trust’s mission to protect and preserve water for the Great Salt Lake. We discuss their water transactions program, their wetland...

Ripple Effect 154: 2024 Legislative Recap

Jeff Gittins of Smith Hartvigsen joins us to discuss the water bills passed during the 2024 Legislative Session. Jeff does a great job of explaining updates to saved water, new long-term planning efforts, and hot items to be watching out for.

Ripple Effect 153: UDAF Ag. Water Optimization Program

Amber Brown, Director of Government and Legislative Affairs, and Hannah Freeze, Program Manager, join us to discuss the Utah Department of Agriculture and Food’s Agricultural Water Optimization program. The State of Utah has invested heavily in studying and employing...

Ripple Effect 151: Discover Ag. Podcast

Tara Vander Dussen, Co-Host of the Discover Ag. Podcast, joins us for a lively and informative discussion about agricultural news and information. We dive into the presence and impact of social media, themes and trends, and why the new “food curious” movement is...

Ripple Effect 150: Colorado River Authority of Utah

Amy Haas, Executive Director of the Colorado River Authority of Utah, talks us through the inception of the entity, how it executes its mission to protect and defend Utah’s portion of the Colorado River, and where the Authority is leading out in tackling hard...

Related Posts