The Small Business Administration (SBA) is providing Economic Injury Disaster Loans (EIDL) to businesses affected by Coronavirus (COVID-19). Texas has been added to the current declared disaster areas eligible for these loans to help alleviate economic injury caused by Coronavirus. Businesses may begin the application now.

What does this mean for my business?

  • The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the Coronavirus disaster not occurred
  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact
  • The interest rate is 3.75% for small businesses and 2.75% for non-profits
    • Businesses with credit available elsewhere are not eligible

Who Qualifies for an EIDL Loan?

  • Small businesses and private, non-profit organizations within designated disaster areas of a state or territory
  • Businesses suffering substantial economic injury as a result of Coronavirus
  • Businesses who are unable to otherwise secure credit

How Long will EIDL Funding Take?

  • Typically, up to 4 weeks, through the three steps below.
  • Apply Online
  • Loan Processing
    • Information is verified and credit checked
    • Forecasts are completed to determine the loan amount
    • An SBA case manager will contact you to make a recommendation and discuss next steps
    • Decisions typically take 4 weeks
  • Loan Closes and Funds
    • Sign and submit loan documents
    • Initial disbursement of $25k within 5 days
    • An SBA Case Manager is assigned to assist you moving forward

How do I apply for an EIDL Loan?

  • Apply online:
  • You may also contact the SBA disaster customer service center:
  • In addition to the loan application, you will need to complete IRS Form 4506-Ts for:
    • Owner
    • Each principal that owns 20% or more
    • Each general partner or managing member
    • Each owner who owns more than 50% of an affiliate business
  • At least two years complete business tax returns with all schedules
  • Personal Financial Statement for each applicant
  • Schedule of Liabilities for all fixed debts
  • Optional: Items above plus 2 years complete financial statements
    • P&L, Balance Sheet, Cash Flow
    • Monthly revenue records for at least two years

How is my current SBA loan affected?

  • If you have a current SBA loan, your loan is not affected and will continue as normal. If you need additional payment relief on your SBA loan, please contact your current SBA lender to discuss what options are available.

Supporting Small Business

The SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.

In addition to the government relief, our local SBA team at SouthStar Bank is here to discuss options available to your business, including the SBA 7(a) Relief Paycheck Protection Program (PPP). This program is designed to help small businesses retain workforce through debt forgiveness for payroll and other eligible expenses during a defined covered period. Contact us to learn more: or 512.456.0035.

Alexis Michael

Senior Vice President / Regional
Credit Manager / SBA Director

512.456.0035 |

NMLS# 790782