SBA Lending | Economic Injury Disaster Loan Program

Governor Ducey declared most Arizona counties, including Maricopa, a disaster area. This means business owners can apply for low-interest loans online through the U.S. Small Business Administration (SBA) Disaster Loan Application Portal at  According to Jordan Ripley, SBA’s Arizona District Office, loan processing is approximately three weeks. Banks are not involved with the program and applicants must communicate directly with the SBA.

Loan approval criteria includes:

  • Applicants must have a credit history acceptable by the SBA.
  • SBA must determine that applicant’s business has the ability to repay the SBA loan.
  • The applicant’s business must physically be located in a declared county and suffered working capital losses due to COVID-19 not associated with an economic downturn before the pandemic.

Applications must include the following items and forms are found in the Disaster Loan Application Portal:

  • Loan application (SBA Form 5), completed and signed (this is electronic/online in the portal).
  • Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant, each principal owning 20 percent or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50 percent ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  • Complete copies, including all schedules, of the most recently filed 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, each principal owning 20 percent or more of the applicant business, and each general partner or managing member.
  • Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).

How much can be borrowed:

  • Eligible entities may qualify for loans up to $2,000,000.
  • Interest rates for this disaster are 3.75 percent for small businesses.
  • Interest rates for nonprofit organizations are 2.75 percent with terms up to 30 years.
  • No prepayment penalty.
  • Initial 12 months may include no payments, full deferral on a case-by-case basis determined by the SBA.
  • Eligibility working capital loans are based on size and type of business and its financial resources.

How funds can be used:

  • Working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the pandemic not occurred.
  • Loans are not intended to replace lost sales or profits or expansion.
  • Funds cannot be used to pay down long-term debt.
  • Business owners cannot pocket proceeds and lay off workforce. Business owners need to show attempts were made to retain employees and operations.

Full details can be found at Coronavirus (COVID-19): Small Business Loan Information. For program questions or assistance, contact Disaster Customer Service Center at 800.659.2955.

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