---
title: Coronavirus Special Update - SBA Loan Details
description: As news evolves, Employer Flexible will provide brief updates on COVID-19 legislative developments regarding financial assistance for small businesses.
---

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# [Coronavirus Special Update - SBA Loan Details](https://blog.employerflexible.com/coronavirus-special-update-sba-loan-details)

 Written by [Employer Flexible](https://blog.employerflexible.com/author/employer-flexible) | March 24, 2020

As news quickly evolves, Employer Flexible will be providing brief updates on Coronavirus (COVID-19) related news and its impact on employers. As you may know, there have been recent legislative developments regarding financial assistance for small businesses during this time.

## What it is:

Last week, President Trump instructed the U.S. Small Businesses Administration (SBA) to offer loans to small businesses across the country who have been impacted by COVID-19. Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19). The Disaster Assistance Program will be an Economic Injury Loan, and the link is already live for business to apply directly with SBA [here](https://disasterloan.sba.gov/ela/).

## How it works:

The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

 

These loans are a completely separate type of SBA loan than those which SBA routinely makes to borrowers under normal circumstances. Find more information on the Economic Injury Disaster Loan [here](https://www.sba.gov/funding-programs/disaster-assistance).

## Preliminary Details:

The program parameters for this Economic Injury Loan are not yet finalized by Congress, only Bills being considered at this point. However, the preliminary details include:

- Up to $2MM for Working Capital purposes/business overhead expenses (includes payroll, lease and loan payments, other G&A, etc.)
- Businesses under 500 employees
- Profits & Some Non-Profits (but not churches, houses of worship)
- No refinance of existing debts
- First payment of the term WC loan would be 1 year from note date
- Credit would be flexible, but Pre-coronavirus performance to show viability may be required
- Low interest not to exceed 4%

*Please note that Borrowers may apply but there is no Disaster Assistance Program set yet and the above parameters may change.

## Further Information:

SBA is available to assist small businesses with accessing federal resources and navigating their own preparedness plans as described by the [CDC’s Guidance for Businesses and Employers.](https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fspecific-groups%2Fguidance-business-response.html) Small businesses are encouraged to do their part to keep their employees, customers, and themselves healthy. Find out more about the SBA loan resources [here](https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources).

 

[View full post](https://blog.employerflexible.com/coronavirus-special-update-sba-loan-details)

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