SBA Disaster Loans for COVID-19

These are initial details from our Emergency Management Division (EMD) on the process for unlocking SBA Disaster Loans recently approved by Congress.

What does the new SBA disaster assistance mean for businesses in Washington?
New federal legislation and appropriations has opened up the possibility for small businesses to receive assistance for economic loss due to COVID-19. Details of eligibility and administration of this assistance from SBA are still being addressed by the SBA. However, some information from the traditional SBA Economic Injury Disaster Loan (EIDL) program will still apply for COVID-19.

  • If a small business has suffered substantial economic injury as a result of COVID-19, it may be eligible for financial assistance from the U.S. Small Business Administration.
  • Small businesses and small agricultural cooperatives that have suffered substantial economic injury may be eligible for the SBA’s Economic Injury Disaster Loan (EIDL) Program.
  • Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses.
  • An EIDL can help meet necessary financial obligations that a business could have met had the disaster not occurred.
  • It provides relief from economic injury caused directly by the disaster and permits the business to maintain a reasonable working capital position during the period affected by the disaster.
  • The SBA provides EIDL assistance only to those businesses that SBA determines are unable to obtain credit elsewhere.
  • The loan amount will be based on the business’ actual economic injury and financial needs.
  • The interest rate on EIDLs cannot exceed 4 percent per year.
  • The term of the loans cannot exceed 30 years.
  • Terms and conditions will be determined by the business’ ability to repay the loan

How do counties apply for assistance?
To apply for this assistance, a county must provide one Economic Injury Worksheet for at least one business demonstrating economic loss due to COVID-19. There must be a minimum of five Economic Injury Worksheets submitted statewide for Washington to be eligible. If a county were to be approved for the SBA Economic Loss Declaration, then each contiguous county around the declared county would be eligible for SBA economic injury assistance.
We recommend counties begin collecting Economic Injury Worksheets as soon as possible. We ask counties to work with their cities and towns to collect the forms and submit them through the county to EMD. Counties please submit completed EIDL forms to HSDamage@mil.wa.gov and state your county name and EIDL in the subject line, e.g. “Snohomish County EIDL”.
Businesses can fill out the Estimated Disaster Economic Injury Worksheet for Business to use when applying for assistance through the SBA, which you can submit here:

ECC, Joint Information Center eccjic.activation@snoco.org and the ECC, Manager eccmanager.activation@snoco.org

When will more information be available?
Detailed SBA guidance for COVID-19 is still being developed by SBA and should be available in the next several days. As soon as further information is available, we’ll provide it to you. We ask that you work directly with Washington Emergency Management and not directly with SBA during this process.

Who is the best contact if counties have questions?
The contact for SBA at Washington Emergency Management Division is Travis Linares-Hengen: travis.linares-hengen@mil.wa.gov, (253) 512-7028.

Yazmin Mehdi (she/her)
Deputy District Director