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How disaster loans will help businesses during COVID-19

Disaster Loans for Phoenix Businesses

March 20, 2020

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The Small Business Association (SBA) is now offering low-interest disaster loans of up to 2 million dollars to small businesses that have been affected by the Coronavirus (COVID-19). 

How to apply for disaster relief loan

According to the SBA website, 

Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).

To find out if you qualify for a disaster relief loan, visit the Disaster Loan Assistance website and enter your state and county. Select the incident “Coronavirus (COVID-19).” This will tell you if you live in a qualifying area. 

Once you have confirmed that you live in a qualifying area, go to the Disaster Loan Assistance Log-in page. You will then create an account and fill out an online application. 

Along with your application, you will also need the following documents (available in the Disaster Loan Application Portal)

  • Tax Information Authorization (IRS Form 4506-T) completed and signed by each applicant, each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  • Complete copies, including all schedules, of the most recently filed 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, each principal owning 20 percent or more of the applicant business, and each general partner or managing member.
  • A Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).


The SBA office will coordinate with your local governor to submit your request.

For assistance in applying for a loan, call or email the SBA at (800) 659-2955 or

The deadline to apply is December 21, 2020. 

About the disaster loans

Credit requirements 

According to the SBA Economic Injury Disaster Loans fact sheet, candidates must:

  • Have an acceptable credit history according to the SBA
  • Must show the ability to repay the loan 
  • EIDL loans over $25,000 require collateral. Collateral can include real estate. Loans will not be declined for lack of collateral. The borrower must pledge collateral that is available. 

Interest rates

  • Small businesses: 3.75%
  • Non-profits: 2.75%
  • businesses with credit available elsewhere are not eligible. 

Disaster Loan Terms

  • The SBA will determine the length of loan repayment based on the amount borrowed up to 30 years in hopes to keep payments manageable for borrowers. 
  • The SBA can give loans up to 2 Million dollars; however, if the employer is a significant source of employment, the lender can offer more. 
  • Economic Injury Disaster Loans cannot be used to refinance long term debts. 
  • The SBA has the right to require you to obtain appropriate insurance. For example, you are required to obtain and maintain flood insurance if the collateral property is located in a flood zone. 
  • Disaster funding can be used for payroll, accounts payable, and other necessary payments. 

If you have any questions about your qualifications for the SBA Economic Injury Disaster Loans, please let us know. We are happy to help Phoenix businesses work through their options during this time. 



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