A disaster loan program is already up and running. Congress authorized up to $7 billion early this month for small business disaster loans through the Small Business Administration. Unlike the agency’s flagship loans, which are made by banks, disaster loans are issued directly by the government.

Red tape has slowed the process. To make businesses in their state eligible for the loans, each state’s governor had to submit a formal disaster declaration request to the agency. It took until Sunday for all 50 states to have their applications filed and approved.

S.B.A. representatives declined to say how many loan applications the agency has received or approved. In past disasters, it has typically taken the agency at least two weeks to make loan decisions.

Companies with up to 500 workers can borrow as much as $2 million at a 3.75 percent interest rate, which is far lower than the cost of typical small business loans. But defaulting can have catastrophic consequences: The agency asks those seeking more than $25,000 — and most small business loans are at least that much — to put up collateral, preferably real estate. That’s a standard term on nearly all S.B.A. loans.

Borrowers who own their homes often risk losing the property if they can’t repay what they borrowed. Terms like that spook business owners, especially now, when there is little clarity around when and how the coronavirus pandemic will subside, and whether mom-and-pop shops will ever recover.