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Small Business Assistance: Economic Injury Disaster Loan

Small Business Assistance: Economic Injury Disaster Loan

On Tuesday afternoon, Governor Mike DeWine and Lt. Governor Jon Husted sent a letter and application to the U.S. Small Business Administration to qualify the State of Ohio for the Economic Injury Disaster Loan program. 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. Loan rates are expected to be 3.75% for businesses and 2.75% for non-profits with long-term repayments in order to keep payments affordable. Terms will be determined on a case by case basis.

As the application becomes available once federal approval comes, reach out to your Small Business Development Office to assist in facilitating this process. 

If you’re a small business that is either directly or indirectly affected by the COVID-19 breakout, here is an outline of the procedure to claim an SBA Economic Injury Disaster Loan:


  1. If you already have an existing SBA or 504 loan, reach out to your bank or HCDC and request a deferment.
  2. Once federal designation is approved for Ohio, fill out an application. They can be found online here: https://disasterloan.sba.gov/ela/. In order to expedite the application process, these are the necessary items to begin compiling in PDF format for inclusion:

a.            A projection on expenses.

b.           Personal finance statement.

c.            3 years of tax returns on the business. If your 2019 taxes are not prepared yet, include a current in-house statement for 2019 and the last 3 years.

d.           The last 12 months of sales, broken out month-to-month.

e.           A debt service schedule or any existing liabilities.

  1. Once the application has been filled out and submitted, it goes to the SBA for consideration and underwriting.
  2. Once approved, it gets kicked over to SBA’s legal for review and approval
  3. SBA’s legal will prepare loan documentation
  4. Closing followed by a final submission to SBA’s legal for final review
  5. The SBA will direct the funds be disbursed through the treasury department


What else you need to know about Economic Injury Disaster Loans:

  • These loans are only intended as working capital loans utilized to assist with impact caused by the coronavirus emergency efforts. The EIDL's are not for other purposes such as expansion, new equipment, property purchases, etc. that do not have anything to do with the national emergency we are facing.
  • Interest rates will likely be 3.75% for businesses and 2.75% for non-profits.
  • Loan applications will be evaluated by SBA loan officers. Criteria includes:
  • Credit history acceptable to the SBA
  • Repayment abilities
  • Eligibility - businesses in a declared state/county, suffered working capital losses due to the declared disaster (not a general downturn in business due to the economy or other reasons).
  • Paper application can be submitted but this will slow the process considerably


See Downloads for these supplemental PDFs

•               PDF: SBA Disaster Assistance Loans for Businesses & Nonprofits 1 pager

•               PDF: SBA Disaster Loans FAQ

•               PDF: SBA Disaster Assistance in Response to the Coronavirus

•               PDF: SBA Types of Small Businesses

•               The Governor and Lt. Governor’s news release on their formal submission for federal assistance on small business. https://governor.ohio.gov/wps/portal/gov/governor/media/news-and-media/dewine-husted-submit-formal-request-for-federal-assistance-for-small-businesses

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