Coronavirus Business Resources

SBA Economic Injury Disaster Loan Process

UPDATE 3/30: The SBA made updates to their application process over the weekend to control application traffic to the website. At this time, the SBA has moved away from the DropBox application process discussed last week.

Please click this link to apply:

UPDATE 3/27: The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to
small businesses who maintain their payroll during this emergency.

Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

To determine if your business is eligible for this type of funding, check out this handy guide from the U.S. Chamber of Commerce.


In response to the novel coronavirus, COVID-19, outbreak and public health emergency, the U.S. Small Business Administration has approved disaster loans as a financing option for small businesses. On Thursday, March 19, Loudoun County businesses became eligible for these low-interest, long-term disaster loans. SBA disaster loans offer an affordable way for businesses to recover from declared disasters.

This program provides low-interest loans up to $2 million in order to help businesses overcome the temporary loss of revenue during the state of emergency.

Criteria for Loan Approval:

  • Credit History – Applicants must have a credit history acceptable to SBA.
  • Repayment – SBA must determine that the applicant business has the ability to repay the SBA loan.
  • Eligibility – The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons. In the case of the Coronavirus, small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due.

The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years.

At this time, all business owners who want to apply for these loans should begin pulling together information as outlined below.

All applications can be started online by going to

Recheck the filing requirements to ensure that all the needed information is submitted. The biggest reason for delays in processing is due to missing information. Make sure to complete all filing requirements before submitting the application and forms.

For support in applying for an SBA loan, please contact Loudoun Economic Development’s Kevin Welch or the Loudoun Small Business Development Center.

The SBA will determine loan amount after determining eligibility. The SBA’s goal is to disperse loan amounts of up to six months of operating expenses. Loan payments are deferred for one year, with interest beginning when loan funds are dispersed.

Other options to consider:

Ask for deferred payments to banks and creditors: Businesses should ask for a payment deferral (interest only or otherwise) before applying for additional credit (if possible).  Banks have the ability to defer SBA guaranteed loans under their unilateral authority.  The decision to defer is ultimately up to the bank.  Any business, especially those with notes, should have a conversation with their banker.  The structure of the deferment (interest only or full deferment) is up to the bank.  The payment history/status of commercial notes are not normally reported to the credit reporting agencies and most don’t unless there’s a default.

As always, proactive communication from both parties provides for better overall outcomes.

Make significant changes to your operations.  Monitor all expenditures and try to encourage receivable collections when possible.

All business owners need to remember the basic premise of business: CASH IS KING. Cash will be needed to allow the business to rebound when conditions stabilize.

Still have questions ?

To talk to a Loudoun Economic Development staff member visit our Contact Us page.

The Loudoun SBDC has coaches that can help you with loan package preparation. If you have questions about the process or need assistance in gathering information or filling out application forms contact us and we will get you connected with a coach as soon as possible.

Email Loudoun SBDC or call us at (703)466-0466 to learn more.