COVID-19 Webinar: What You Need To Know About Economic Injury Disaster Loans

March 31, 2020

These are tough economic times for small businesses all over the country affected by the impact of the coronavirus. Business owners are doing everything they can to stay in business and take care of valuable employees and business share. A lot of businesses have been doing well, but few have the financial resources to survive on their own without customers. They need help!

U.S. Small Business Administration (SBA) disaster assistance can be just the help business owners are looking for in the form of low-interest, long term direct federal Economic Injury Disaster Loans.

Find out how it works, what you need to do today, and how businesses and private nonprofits of all sizes can benefit in this short information- filled presentation by the SBA Office of Disaster Assistance.

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Speaker: Burl Kelton, U.S. Small Business Administration PIO

Over the past ten years, Burl has responded to numerous floods, hurricanes, tornadoes and wildfires that have destroyed hundreds of thousands of homes and businesses including: Hurricanes Ike, Irene, Sandy and Harvey, wildfires in California, floods and tornadoes in the Midwest.

Additional Resources and FAQ

SBA CARES Act Paycheck Protection Program

Best resource:


Yes. Apply for the short term emergency SBA Disaster Assistance EIDL (SBA.GOV), the long term SBA Disaster Assistance EIDL (updated website pending) and the Paycheck Protection Program (PPP) (local financial provider or bank).


You can apply through your local financial provider or bank after April 3, 2020.

Lenders may begin participating April 3, 2020.

Consult with your CPA.

Apply with the short term SBA Disaster COVID EIDL at, using the link at top of the screen. Be sure to also consult your PPP banker and information at,

  • The PPP states from Feb 15 to June 15 – and that it’s a grant if I keep all employees. What if the number of employees decreases due to not having the income to support this. Will the grant turn into a loan? Example – I had 5 employees on payroll in March but I will most likely have 3 by June – If I take the PPP loan and pay for payroll April, May and June will I be accountable to pay this back in a loan or will it be under the grant?
  • Regarding PPP, if we already had layoffs, and don’t intend to replace those employee’s for reasons not linked to Covid-19, how does the forgiveness work?
  • If rent is paid using a company’s credit card, what type of documentation is necessary to satisfy forgiveness under PPP?
  • Should I apply for the PPP for employees and the CARES act SBA loan for rent etc? Or just CARES loan?
  • PPP is intended to support cash flow in order to maintain payroll. But is it applicable to support just a portion of my employees who are still on the payroll?
  • If you take a loan out that is only enough to cover the 8 week period of payroll, rent and utilities, will that loan in its entirety be forgiven?
  • How do we access the paycheck protection program?
  • Should I keep employees on payroll, even though we’ve let them all go from the Ski shop?
  • If hours for employees are reducedcould we still be eligible for the payroll loan?

  • For the PPP loan program, how should seasonal businesses (like ski resorts) address the payrolls and loan forgiveness impact of seasonal employees.
  • Our company is owned by a company in Europe. We are incorporated in the US and employ 20 full time US staff. Are we eligible for PPP and EIDL?
  • For PPP loans, are independent reps considered employees (1099), or temps hired through an agency?
  • When do we expect more detail on the payroll protection plan?
  • Is a private organization registered as a nonprofit (non-charity) eligible for PPP?
  • Where can I find the most updated information on Paycheck Protection Loan vs Standard 7(a) SBA Loan?

CARES Act SBA Disaster Emergency EIDL

If you demonstrate the business meets the requirements and make request.

See and consult with your PPP banker or CPA.

Visit for more details.

Independent contractors are eligible to apply for the short term SBA Disaster Assistance emergency EIDL loan/grant. Apply at, and click on the yellow banner link at the top of the website.

Consult with your CPA after reviewing the program at

Please visit for more details about employee break downs.

Visit about the EIDL and for more information on the PPP consult your banker or CPA.

Businesses may apply for one, two, or all three programs: PPP, short term emergency disaster assistance EIDL and long term disaster assistance EIDL.

Independent contractors may apply individually.

That is one aspect of the PPP. Visit for more details.

SBA Disaster short-term emergency EIDL

The loan can be converted to a grant if all fund usage requirements are met.

It is a short term SBA administered emergency economic injury loan up to $10,000 based on the number of employees in the business. It is intended to be used for payroll and operating expenses. It may be converted to a grant if all requirements are met.

There is no prepayment or early repayment penalty.

There are two SBA Disaster Assistance EIDL loans. They may be applied for separately, but you do need to be qualified and not an ineligible applicant. The long-term Disaster Assistance EIDL online portal is still being updated and will be available soon. The short-term Disaster Assistance emergency EIDL can be reached at: with the link at the top of the screen.

SBA Disaster long term COVID EIDL

The long-term SBA Disaster EIDL loan amount and term is set by SBA based on all available financial information from the business and in discussion with the owner.

Discuss this with your Loan Officer in processing.

Charitable organizations and public non-profits (government or government services) are not eligible.

Private non-profits are eligible. Church non-profits can only be of secular non-religious activity. Discuss with a Loan Officer if you have questions.

For the long term SBA Disaster EIDL loan status, call: 800-659-2955, or email:, until the website is available. You do not need to re-apply if your application is in the processing system.

At this time, the long-term SBA Disaster Assistance EIDL loan does not have a forgiveness component.

Collateral is not required in Phase I.

Generally, no. The Loan Officer can discuss any concerns you have about current savings.

The short-term SBA Disaster emergency loan, if not converted to a grant, and the long-term SBA Disaster loans have interest rates of 3.75% for business and 2.75% for private non-profits. Both are simple, annual rates.

The short-term SBA Disaster emergency loan asks for previous year’s revenue total and previous year’s cost of goods. Also, additional income from other sources. No documentation is required with the application. The long-term requirements are being updated and will be available soon.

Deadline to apply is Dec. 31, 2020.

Yes. They must be separate business entities.

The applying entity must be a U. S. company. You will need to discuss size limits and ownership issues with the Loan Officer.

The short-term SBA Disaster emergency EIDL has a target turnaround of a few days for eligible funds. We will be working to disburse as soon as possible for the long-term SBA Disaster EIDL loans, once the site is operating with new CARES Act features.

Seasonal Employers

We don’t have any information about state unemployment programs. Contact your state agency.

If you have employees and operating expenses to remain viable as a business, apply to all three programs, after consulting with your banker and/or CPA for the PPP.

Independent contractors may apply to both the short term and long term SBA Disaster EIDL.

Visit for more details about employee classifications.

Other FAQs

Yes, if in business on Jan. 31, 2020.

Consult the Loan Officer if you are applying for the long-term SBA EIDL. Information may be added during loan processing.

A separate disaster declaration is required for each state individually, requested by the Governor.

The long-term SBA Disaster EIDL is designed for long term recovery. The deadline for application for the long-term EIDL is December 31, 2020.

Consult with your state agency regarding unemployment programs and visit

That would be the business owner’s decision.