SBA COVID-19 Economic Injury Disaster Loan

Texas has been added to the Small Business Administration’s Economic Injury Disaster Loan (EIDL) Program in response to the Coronavirus (COVID-19) disaster.
View SBA Texas Declaration #16381 / Disaster TX-00544

What are EIDLs?
Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.

More information:

U.S. Small Business Administration Fact Sheet – Economic Economic Injury Disaster Loans
SBA Disaster Assistance in Response to the Coronavirus

Texas Workforce Commission Coronavirus FAQ and Employer Resources

Hoja de Datos de la Agencia Federal para el Desarrollo de la Pequeña Empresa – Préstamos de Desastres por Pérdidas Económicas
Asistencia de Desastre de la SBA en Respuesta al Coronavirus

Application – The three-step process

View/download as PDF
PDF en español

Step 1: Apply for the Loan

  • Apply 1) online at the SBA’s secure website; 2) in-person at a disaster center; 3) by mail. (Note: In your application, you will need to provide the SBA Declaration number for Texas – #16381)
  • As a business of any size, you may borrow up to $2 million for physical damage.
  • As a small business, small agricultural cooperative, small business engaged in aquaculture, or private non-profit organization you may borrow up to $2 million for Economic Injury.
  • As a small business, you may apply for a maximum business loan (physical and EIDL) of $2 million.

Step 2: Property Verified and Loan Processing Decision Made

  • SBA reviews your credit before conducting an inspection to verify your losses.
  • An SBA verifier will estimate the total physical loss to your disaster damaged property.
  • A loan officer will determine your eligibility during processing, after reviewing any insurance or other recoveries. SBA can make a loan while your insurance recovery is pending.
  • A loan officer works with you to provide all the necessary information needed to reach a loan determination. SBA’s goal is to arrive at a decision on your application within 2-3 weeks.
  • A loan officer will contact you to discuss the loan recommendation and your next steps. You will also be advised in writing of all loan decisions.

Step 3: Loan Closed and Funds Disbursed

  • SBA will prepare and send your Loan Closing Documents to you for your signature.
  • Once SBA receives your signed Loan Closing Documents, an initial disbursement will be made to you within 5 days: Economic injury (working capital): $25,000
  • A case manager will be assigned to work with you to help you meet all loan conditions. They will also schedule subsequent disbursements until you receive the full loan amount.
  • Your loan may be adjusted after closing due to your changing circumstances, such as increasing the loan for unexpected repair costs or reducing the loan due to additional insurance proceeds.

Required Documentation

The following documents are required to process your application and reach a loan decision. Your Loan Officer and Case Manager will assist you to ensure that you submit the proper documentation. Approval decision and disbursement of loan funds is dependent on receipt of your documentation

  • Disaster Business Loan Application (SBA Form 5) or Disaster Home / Sole Proprietor Loan Application (SBA Form 5c) completed and signed by business applicant.
    SBA Form 5
    SBA Form 5 en español
    SBA Form 5c
    SBA Form 5c en español
  • IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
    IRS Form 4506-T
    IRS Form 4506-T Instructions
    IRS Form 4506-T Instrucciones en español
  • Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
  • Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
    SBA Form 413
    SBA Form 413 en español

Additional Information That May Be Necessary To Process Your Application

  • Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  • 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 is acceptable.
  • A current year-to-date profit and loss statement
  • Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.
    SBA Form 1368
    SBA Form 1368 en español

These forms are also available on SBA’s website at https://disasterloan.sba.gov/ela/Information/PaperForms