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March 19, 2020

SBA outlines loan criteria for CT companies

U.S. Small Business Administration (SBA) Deputy District Director Julio S. Casiano went online Wednesday morning to address the subject most urgent in the minds of Connecticut business people this week: disaster relief.

HBJ File Photo
Julio C. Casiano

Casiano took part in a webinar hosted by the Greater New Haven Chamber of Commerce Wednesday morning on “Understanding SBA Loans.” The session, hosted by GNHCC President Garrett Sheehan, also featured panelists Joseph Williams of the Connecticut Small Business Development Center and Glendowlyn Thames, deputy commissioner of the state’s Department of Economic & Community Development (DECD).

Beginning this week Connecticut became one of the first three states in the nation (along with Maine and Rhode Island) to make available Economic Injury Disaster Loans (EIDLs) to state-headquartered companies that have been adversely impacted by the coronavirus outbreak.

The initiative makes available loans of up to $2 million to qualifying small businesses and non-profit organizations. These are working-capital loans used to address economic injury already incurred as a result of the crisis as well as to continue operations at a time of reduced revenue streams as a result of the crisis.

According to Casiano, in addition to direct economic injury, EIDL loans are available “to pay fixed debts, payroll, accounts payable and other bills that could have been paid had disaster not occurred.”

The SBA deputy director outlined who could apply for immediate relief, and how.


Casiano said the SBA had made eligibility requirements for small businesses applying for disaster-relief loans as broad as was practical. Eligible companies are those directly impacted by the COVID-19 crisis, those indirectly impacted and also companies that provide goods and services to businesses in either of the first two groups.


Casiano said that although EIDLs are emergency measures, companies must nevertheless meet certain criteria to qualify for the loans of up to $2 million. These include:

  • A proven credit history acceptable to the SBA for loans in excess of $25,000
  • Ability to repay the loan (“If you’re asking for $200,000, you must show us the ability to pay that back,” Casiano explained.)
  • Applicant companies must be headquartered in one of the “declared counties” qualifying for relief — which includes all eight Connecticut counties.


Casiano said the SBA had made terms for EIDLs as generous as possible:

  • A repayment annual interest rate of 3.75 percent for approved small businesses
  • An annual percentage rate of 2.75 percent for qualifying non-profit organizations
  • Repayment terms of up to 30 years.


Although SBA EIDL loans are intended as an emergency measure, collateral is nevertheless required for loans in excess of $25,000. Casiano said his administration would accept real estate as collateral when available. He also added that “the SBA will not decline a loan application for lack of collateral” alone.

Who can apply

Qualified small businesses include hotels, recreational facilities, restaurants (“We’ve been flooded with calls” from restaurants, Casiano noted), retailers, manufacturers, travel agencies, wholesalers and others.

Qualified private non-profit organizations include nursing homes, museums, educational facilities, day-care and senior centers and others, Casiano said. Non-qualifying non-profits would include religious and charitable organizations, he added.

Filing requirements

Loan applicants may apply online at LINK. Applicants should be prepared to provide:

  • A completed loan application
  • Authorization for the SBA to access applicant’s business tax information (typically using IRS Form 4506T) 
  • Most recent federal tax return
  • A schedule of liabilities (SBA Form 2202)
  • A personal financial statement for all principals of the business holding more than 20 percent of stock in the corporation (SBA Form 413).

Casiano emphasized that the SBA would work to be as flexible as possible with loan applicants during the period of crisis. “Don’t be concerned, for example, if you’ve only been in business for three months and don’t have financial statements,” he said. “We will work with you.”

Information on using electronic filing to apply for EIDL is available at Applicants may also phone 800-659-2955 for direct assistance.

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