Small business loan form on a wooden table.

Small Business Administration (SBA) Loans for Small Business


Submitted by Schmersahl Treloar Advisors

Under the recently passed “Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020′ small businesses and non-profit organizations may be eligible to apply for targeted, low-interest loans as a result of damages from the Coronavirus (COVID-19). Businesses and non-profits in Illinois and Missouri are eligible. Specifically, the SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to overcome the temporary loss of revenue.

These loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. These loans have long-term repayments in order to keep payments affordable, up to a maximum of 30 years with interest rate of 3.75% for small businesses and 2.75% for non-profits.

Some notable requirements:

  • Unlike traditional SBA loans, prospective borrowers apply directly to the SBA.
  • These loans require a guarantor, even for non-profits. Anyone that owns 20% or greater will be required to guarantee the loan
  • The ‘SBA Credit Elsewhere Test Applies’. Generally, this analysis determines whether the borrower has the ability to obtain some or all of the requested loan funds from alternative sources without causing undue hardship.
  • The business must meet the size requirements to be considered an eligible small business. The SBA’s size standards apply and can be accessed online here: Size Standards Per NAICS Codes The standards vary by industries and measured by average annual revenues or number of employees,
  • The loan program excludes certain businesses including religious and some charitable organizations. Generally, a common business-to-business or business to consumer business qualifies.
  • The deadline to apply for an Economic Injury Disaster Loan is December 21, 2020.

Loan Applications

Application for the loan is made at

The applications require a number of forms and documents, including:

  • SBA Loan Application (SBA Form 5 or 5C)
  • Tax Information Authorization (IRS Form 4506T)
  • Complete copies of the most recent Federal Income Tax Return
  • Schedule of Liabilities (SBA Form 2202)
  • Personal Financial Statement (SBA Form 413)

In addition, you should expect to supply:

  • Complete copy, including all schedules, of the most recent Federal Income Tax Return for principals, general partners or managing member, and affiliates
  • If the most recent Federal Income Tax Return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year
  • A current year-to-date profit-and-loss statement
  • Additional Filing Requirements (SBA Form 1368) providing monthly sales figures. This is especially important for this type of SBA loan.

These applications are challenging for many small businesses. Your service team at Schmersahl Treloar is available to assist you as needed.

Please be aware the number of applications has overwhelmed the SBA. As a result, their website is frequently down. Be patient and persistent. None of us were prepared for the Coronavirus.

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