SBA Overhauls the Disaster Loan Application Process in Response to the CARES Act

Morrison & Foerster – During these uncertain times, small businesses have been pursuing both Paycheck Protection Program and SBA Economic Injury Disaster loans.  Note, however, that Disaster loan applications submitted manually to the SBA prior to March 27 may require resubmission.  After the passage of the CARES Act, to expedite the loan processing, SBA streamlined the application process.  This overhaul eliminated the manual process.  The new application is digital, does not require documentation to upload, and allows for self-certification.  If applying for an Economic Injury Disaster Loan, up to $10,000 in advance funds will be made available within days of a successful application.  This loan advance will not have to be repaid.  The link to the SBA website for COVID-19 small business relief is here.