Update, Friday April 24th: The Small Business Administration has announced that it will begin accepting applications for the second round of Paycheck Protection Program loans on Monday, April 27 at 10:30am. We plan to begin accepting applications again at that time. Please watch this website and your email for additional information on Monday morning. Thank you for your business. We are all in this together.
On April 16th, the Small Business Administration (SBA) announced that the funding for the Paycheck Protection Program (PPP) has been fully exhausted and they are no longer accepting applications. While there is a possibility that Congress might enact additional funding, we are not accepting applications at this time as we cannot predict if Congress will initiate additional funding or if that the program and/or application may change significantly. When new funding becomes available, we will update our website and social media to alert any business customers who have not yet applied.
Our business lending team, led by John Swedberg, wants to ensure that all local businesses and nonprofits are aware of the Small Business Administration’s (SBA) expansion of their Economic Injury Disaster Loans (EIDL) with the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The CARES Act has temporarily expanded eligibility for Emergency Injury Disaster Loans to provide an option for an $10,000 cash advance option to small businesses and certain non-profits and veteran organizations with fewer than 500 employees harmed by COVID-19 within 3 days of applying for the loan. This emergency advance is known as the Emergency Economic Injury Grant. The Emergency Economic Injury Grant does not need to be repaid, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
To begin this process:
- Visit https://covid19relief.sba.gov/#/.
- You will be asked to provide basic information about your business and the business owners.
- On the last screen, if you opt in to the $10,000 request for an Emergency Economic Injury Grant, you will asked to supply your bank account and routing number.
- A summary of all your information can be reviewed prior to submitting your application.
- You will not be asked to upload any documentation at submittal. However, you may be asked for supporting information at a later date.
The Small Business Owner’s Guide to the CARES Act also offers the following frequently asked questions about EDILs and the Emergency Economic Injury Grant.
How do I apply for an economic injury disaster loan?
To apply for an EIDL online, visit https://covid19relief.sba.gov/#/
Are businesses and private non-profits in my state eligible for an EIDL related to COVID-19?
Yes, those suffering substantial economic injury in all 50 states, DC, and the territories may apply for an EIDL.
What is an EIDL and what is it used for?
EIDLs are lower interest loans of up to $2 million, with principal and interest deferment at the Administrator’s discretion, that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.
Who is eligible for an EIDL?
Those eligible are the following with 500 or fewer employees:
- Sole proprietorships, with or without employees
- Independent contractors
- Cooperatives and employee owned businesses
- Tribal small businesses
Small business concerns and small agricultural cooperatives that meet the applicable size standard for SBA are also eligible, as well as most private non-profits of any size. See below for more info on size standards.
My private non-profit is not a 501(c)(3). Is it still eligible for an EIDL and a grant?
Yes, if you are a private non-profit with an effective ruling letter from the IRS, granting tax exemption under sections 501(c), (d), or (e) of the Internal Revenue Code of 1954, or if you can provide satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law.
However, a recipient that is principally engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs, whether in a religious or secular setting, or primarily engaged in political or lobbying activities is not eligible to receive an EIDL. If you are uncertain whether you qualify, please consult with legal counsel to determine whether your organization meets program criteria.
Who is eligible for an Emergency Economic Injury Grant?
Those eligible for an EIDL and who have been in operation since January 31, 2020, when the public health crisis was announced.
How long are Emergency Economic Injury Grants available?
January 31, 2020 – December 31, 2020. The grants are backdated to January 31, 2020 to allow those who have already applied for EIDLs to be eligible to also receive a grant.
If I get an EIDL and/or an Emergency Economic Injury Grant, can I get a PPP (Payroll Protection Program) loan?
Whether you’ve already received an EIDL unrelated to COVID-19 or you receive a COVID-19 related EIDL and/or Emergency Grant between January 31, 2020 and June 30, 2020, you may also apply for a PPP loan. If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance amount received under the Emergency Economic Injury Grant Program would be subtracted from the amount forgiven in the PPP.
However, you cannot use your EIDL for the same purpose as your PPP loan. For example, if you use your EIDL to cover payroll for certain workers in April, you cannot use PPP for payroll for those same workers in April, although you could use it for payroll in March or for different workers in April.
How do I know if my business is a small business?
Please visit https://www.sba.gov/size-standards/ to find out if your business meets SBA’s small business size standards. You will need the 6-digit North American Industry Classification Code for your business and your business’s 3-year average annual revenue.
How do I apply for an economic injury disaster loan?
I am unfamiliar with the EIDL process, can anyone help me apply?
Yes, SBA resource partners are available to help guide you through the EIDL application process. You can find the nearest Small Business Development Center (SBDC), Women’s Business Center, or SCORE mentorship chapter at https://www.sba.gov/local-assistance.