April 10, 2020 - Coronavirus, Small Business

SBA Overhauls the Disaster Loan Application Process in Response to the CARES Act

FCADuring these uncertain times, small businesses have been pursuing both Paycheck Protection Program and SBA Economic Injury Disaster loans.  Note, however, that Disaster loan applications submitted manually to the SBA prior to March 27 may require resubmission.  After the passage of the CARES Act, to expedite the loan processing, SBA streamlined the application process.  This overhaul eliminated the manual process.  The new application is digital, does not require documentation to upload, and allows for self-certification.  If applying for an Economic Injury Disaster Loan, up to $10,000 in advance funds will be made available within days of a successful application.  This loan advance will not have to be repaid.  The link to the SBA website for COVID-19 small business relief is here.

If you intend to call to check on the status of a loan, be sure to have your loan reference number available, and be prepared for a hold time between one and two hours.  The SBA helpline is 1-800-659-2955.

Please see our previous posts on the Paycheck Protection Program:

*David Allman is a Law Clerk in the Washington, D.C. office and is not admitted to the bar.