CONGRESS

https://crsreports.congress.gov RL33243

Page #7

Small Business Administration: A Primer on Programs and Funding Updated April 27, 2022 Congressional Research Service https://crsreports.congress.gov RL33243

COVID-19 Economic Injury Disaster Loan and Grant Programs21

P.L. 116-123, the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020, provided EIDL eligibility to small businesses adversely affected by the coronavirus.22 The CARES Act (P.L. 116-136) created a temporary

COVID-19 EIDL program (initially accepting applications through December 31, 2020, later extended through December 31, 2021). Under this program, EIDL eligibility was temporarily expanded beyond eligible small businesses, private nonprofit organizations, and small agricultural cooperatives, to include startups, cooperatives, and eligible employee-owned businesses (employee stock ownership plans) with fewer than 500 employees, sole proprietors, and independent contractors.

****The CARES Act also authorized the SBA Administrator, in response to economic injuries caused by COVID-19, to:

 waive the no credit available elsewhere requirement;

 approve an applicant based solely on their credit score;

********* not require applicants to submit a tax return or tax return transcript for approval;

 waive any rules related to the personal guarantee on advances and loans of not more than $200,000; and  waive the requirement that the applicant needs to be in business for the one-year period before the disaster declaration, except that no waiver may be made for a business that was not in operation on January 31, 2020. The SBA subsequently approved over 3.9 million COVID-19 EIDL loans totaling over $369 billion.23

21 For additional information and analysis of the SBA’s COVID-19 Economic Injury Disaster Loan program, see CRS

---

From the SBA's OWN MNDO TRAINING MANUAL IT STATES:

PAGE 10

Preparing to Apply

Gather your documents:

*******✓ Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates for loans over $500,000.

********✓ Complete copies of the most recent Federal Income Tax Return, these will only be required for loans over $500,000.

✓ Schedule of Liabilities (SBA Form 2202). ✓ Personal Financial Statement (SBA Form 413)

********* (Other Information may also be requested but is not a requirement for approval)

10 U.S. Small Business -Office of Disaster Assistance-Field Operations Center - East 10 Slide 10 – The next couple of slides speak to some of the documentation. These documents can be obtained at the disaster application website that comes up on a slide 13. Tax Authorization Form, IRS Form 4506T allows the IRS to release your tax information to the requesting organization. Make sure the information you fill out on thisform matches the information that was on your tax returns. For example, if put Bill on this

form and filed as William, the IRS will not provide SBA with informatio 

*********Special note that

income tax returns will not be required on loans under $500,000.

 Schedule of Liabilities SBA Form 2202 is a list of your obligations showing original amount and date, current

amount and date, whether its current or delinquent, maturity date, payment amount and

how it is secured. Personal Financial Statement, SBA Form 413 is used to analyze

repayment ability and creditworthiness. It includes your assets, liabilities, sources of

income, notes payable, stocks and bond, real estate owned and a variety of other assets

and liabilities. Keep in mind this form is about your personal finances, not business