SBA Disaster Assistance in Response to Coronavirus
FAQ #1: How do I apply?
Apply for EIDL with the SBA, https://www.sba.gov/funding-programs/disaster-assistance
Apply for PPP with your local SBA lender
FAQ #2: Can I apply to both?
You can apply for both programs, as long as you do not use the funding for the same purpose (no double-dipping).
FAQ #3: I don’t have employees. Can I still qualify for PPP and apply it to my owner’s draw?
Yes, and yes you can. The CARES Act states: “…individuals who operate under a sole proprietorship or as an independent contractor and eligible self-employed individuals shall be eligible. Applicants who fall in this category will need to provide documentation such as payroll tax filings reported to the Internal Revenue Service, Forms 1099–MISC, and income and expenses.”
FAQ #4: Is collateral required?
None is required for PPP and for EIDL, no collateral is required for loans of $25,000 or less.
FAQ #5: What is this free $10,000 I am hearing about?
As part of the EIDL application, small business owners can request to receive an Emergency Economic Injury Grants of up to $10,000.
More Questions about the SBA Loan Programs?
Here are two places to find help
- The PA SBDC Network will be hosting a live webinar to explain the SBA funding programs, covering both the PPP and EIDL application process every morning from 9:00am – 10:15am.
Recorded webinars with SBA updates as of 4/3 are available in English and Spanish.
- Speak to an SBDC Team member during our daily office hours. Speak with a business consultant face to face (virtually) who can help you right away. You do not need to pre-register. Click below to drop-in between 3:00-5:00 pm every weekday.