Small Businesses Eligible for Relief Loans

In response to the impact the efforts to slow the spread of the COVID-19 virus has had on businesses across the nation, the United States Small Business Administration (the “SBA”) is offering small businesses disaster relief loans to assist with the economic impact of this crisis. Small Businesses in both Minnesota and Wisconsin are eligible to apply for these relief loans.

The disaster relief loans are available to businesses that have suffered “substantial economic injury”, which is shown when a business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. The SBA will issue loans to provide the working capital that is necessary for the business to survive until normal operations can resume. Businesses can use the money to satisfy payment obligations that the business is unable to meet due to the COVID-19 virus including payroll, accounts payable, and fixed debt payments.

Currently, each Business may qualify for up to $2 million in loans to cover its losses related to the pandemic. The interest rate on the loans is 3.75% for for-profit businesses and 2.75% for non-profits. Repayment of the loan is deferred for four months, and the term of repayment is determined by the businesses ability to repay the loan with long-term repayment options available up to 30-years.

Businesses can apply for these loans in-person at a disaster center or by mail using the paper forms found here. Businesses may also apply online by visiting the SBA website at Disaster Loan Assistance.

When applying for the loan the business will be required to provide the following documentation:

(A) Complete copies of the most recent Federal Income Tax Return

(B) Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates

(C) Schedule of Liabilities (SBA Form 2202)

(D) Personal Financial Statement (SBA Form 413)

(E) Monthly sales figures (SBA Form 1368)

(F) Profit and loss statements. Additional documentation may be requested by the SBA in order to process the application.

Upon receipt, the SBA will do a credit check and a loan officer will be assigned to review the application and work with the business in order to determine eligibility and the amount of loss. The SBA website currently estimates a turnaround time of approximately five days to review the application and approximately three weeks for the disbursement of funds if approved. However, there will likely be a substantial increase in applications submitted over the next several weeks and it is uncertain how the increase in demand will affect the processing time.

For additional information regarding the SBA disaster relief loan program, you can visit the following resources:

And as always, do not hesitate to contact our office regarding questions related to this program as well as any questions you may have in navigating through this national crisis. Our business team has been working tirelessly to ensure we are up to date on all the latest updates relating to the COVID-19 pandemic and we are prepared to be a resource to your business.



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