SBA Disaster Assistance in Response to the Coronavirus

SBA Disaster Loan Assistance and CARES Act Webinar (03/28/20)

The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.

– U.S. Small Business Administration

Below is the breakdown of the requirements and terms of the SBA’s emergency funding for small businesses impacted by COVID-19. We understand that many of today’s SMEs may have difficulty qualifying for this program due to its demands, including location, or, may need additional capital to fulfill immediate and long-term business objectives, and White Oak Commercial Finance is here to discuss your unique situation and options.

SBA Disaster Loan Requirements and Terms

Credit Requirements:
  • Credit History – Applicants must have a credit history acceptable to SBA
  • Repayment – Applicants must show the ability to repay the loan
  • Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack for collateral, but SBA will require the borrower to pledge collateral that is available.

Interest Rates: The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 3.750 percent.

Loan Terms: The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.

Loan Amount Limit: The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.

Loan Eligibility Restrictions: Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.
Note: Loan applicants should check with agencies/organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.

Refinancing: Economic injury disaster loans cannot be used to refinance long-term debts.

Insurance Requirements: To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available.

If you have any questions related to SBA’s disaster assistance, or how we can partner to meet your needs in this unprecedented economic environment, don’t hesitate to contact us at or directly reach out to Kysha Pierre-Louis, Bob Grbic, or Tom Otte as listed below.

Bob Grbic

President & CEO
(646) 341-1097
Kysha Pierre-Louis

Head of Government
Contracting Finance
(301) 961-6511
Tom Otte

(415) 644-4190