Written by Canterbury Law Group

Am I Eligible for an SBA Disaster Loan?

Eligibility For SBA Disaster Loan


Yes you are eligible for the SBA disaster loan if you run a small business with less than 500 employees or:

  • Are a small business that meets the size standard of SBA
  • Are a 501(c)(3) with less than 500 employees
  • You are an individual operating as a sole proprietor
  • You are an individual operating as an independent contractor
  • You are an individual who’s self-employed who regularly carries on any business or trade
  • You are a Tribal business concern and meets SBA’s size standard
  • A 501(c)(19) Veterans Organization that meets the SBA size standard

In addition, some special rules may make you eligible:

  • If you are in the accommodation and food services sector (NAICS 72),
    the 500-employee rule is applied on a per physical location basis
  • If you are operating as a franchise or receive financial assistance
    from an approved Small Business Investment Company the normal
    affiliation rules do not apply

Eligibility For SBA Disaster Loan

According to MerchantMaverick, “To be eligible for an Economic Injury Disaster Loan through the SBA, you’ll need to be located in a disaster declared county or a contiguous county. This type of loan is open to private organizations or small business owners who have sustained an economic injury because of the declared disaster.”

Credit Requirements for SBA Disaster Loan

According to SBA, “What are the Credit Requirements? Credit History – Applicants must have a credit history acceptable to SBA. Repayment – Applicants must show the ability to repay all loans. Collateral – Collateral is required for physical loss loans over $10,000 and all EIDL loans over $5,000.”

The credit score needed for a SBA loan is 620 to 640+. According to Fundera, “Generally speaking, SBA loan credit score minimums typically fall somewhere around 620-640+.”

  • The credit score needed for a SBA 7(a) Loans is 640+
  • SBA 7(a) Express Loans: 640+
  • SBA CDC/504 Loans: 680+
  • SBA CAPLines Program: 660+
  • SBA Export Loans: 660+
  • SBA Microloans: 620-640+

Learn more about SBA Disaster Loans

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