Loan Program Now Available to Small Businesses Affected by the Coronavirus– March 22, 2020 by Dave Sobochan

Cohen & Company is sharing information on a new loan program available for small businesses that have been impacted by the Coronavirus.

SBA Economic Injury Disaster Loan Program (7(b)(2))

This is a loan for up to $2 million, with a 3.75% rate and up to 30 years for repayment. There are no prepayment penalties and waiver of payments for the first four to 12 months, depending on the situation. The application is free. The program is underwritten for need and ability to repay, and either secured and/or personally guaranteed. Below is a link to the website and some additional information you will need for your application:

  • https://disasterloan.sba.gov/ela/
  • Check to ensure your area is an eligible disaster area. As of March 20, 2020, 45 states were approved. The remaining states are expected to be approved by Monday, March 23, 2020.
  • Click to apply online and setup a username and password. Plan for 30-45 minutes to submit the information requested.
  • Have the following documents ready:
    • Tax authorization form (IRS Form 4506-T)
    • Last two years of business returns
    • Personal financial statements of owners (Loan is guaranteed but are favorable terms of 3.75% (2.75% nonprofit) and up to 30 year payback)

Questions can be answered at 1.800.659.2955

>> Read Expansion of SBA 7(a) Loan Program Offers Paycheck Protection for Businesses
>> Read Is Your Business a Small Business for the SBA Economic Injury Disaster Loan Program?


Contact David Sobochan at dsobochan@cohencpa.com, Adam Hill at ahill@cohencpa.com or a member of your service team to discuss this topic further.


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Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.