SBA Disaster Loan Technical Assistance

*Update 7/1/20

Applications for Paycheck Protection Program (PPP) loans are now closed. As of June 30, the U.S. Senate passed a bill that would extend the deadline to apply for PPP loans to August 8. Currently, the House of Representatives will need to act in order for the extension to go into effect. OED will continue to monitor actions by the federal government, and communicate if and when the PPP loan applications are being accepted again. Some lending institutions may take PPP applications as Congress works to extend the deadline. 

OED continues to provide FREE technical assistance to small businesses and non-profits who are applying for Paycheck Protection Program (PPP) forgiveness and Economic Injury Disaster Loan (EIDL) and Loan Advance. The Paycheck Protection Program Flexibility Act was enacted, so now there is more forgiveness flexibility for small businesses who received PPP loans. Details about the new rules are below.

The Economic Injury Disaster Loan (EIDL) and Loan Advance reopened to provide low-interest working capital to small businesses and non-profits affects by COVID-19.  EIDL loan assistance can be used to cover payroll and inventory, pay debt, or fund other expenses.

Need help with these SBA resources?

OED provides technical assistance to businesses applying for SBA loans and understanding the CARES Act (Coronavirus Aids, Relief & Security). This includes helping businesses navigate the application process and documentation. 

For general inquiries, please email OED@seattle.gov or call 206-684-8090.

When you call you may reach a live person or a voicemail. If you reach the voicemail, please tell us:

  • Your name
  • Phone number
  • The language you need in English
  • What support you need  

If you need language assistance, either a bilingual staff member will call you back, or we will call in a third-party interpreter on the phone to assist with the conversation.  

Please note that many people are calling us for help, so expect long wait times. You may also experience a wait time while connecting to an interpreter.   

Here are four funding options from SBA to help you overcome the economic disruption due to the COVID-19 outbreak:

SBA Economic Injury Disaster Loans (EIDL) and Loan Advance

Businesses and non-profits that have been impacted by COVID-19 are now eligible to apply for low‑interest working capital loans through the U.S. Small Business Administration (SBA) Economic Injury Disaster Loans program. These loans can help small businesses meet financial obligations and cover operating expenses. The interest rate is 3.75% for small businesses and 2.75% for non-profits. For more information, please visit SBA

Small business owners are eligible to apply for an EIDL advance that can be deposited while your SBA loan is bring processed.  This is calculated on a per employee method, allocating $1,000/employee up to a total of to $10,000.  This does not need to be repaid regardless of outcome of the EIDL application.

SBA EIDL and Loan Advance Checklist EIDL Icon

The Small Business Administration's EIDL program offers long-term, low interest assistance for small businesses and non-profits affected by COVID-19. Small business owners and qualified agricultural businesses in all U.S. states and territories are currently eligible to apply. SBA is now accepting new EIDL and EIDL Advance applications

 EIDL loan assistance can be used to cover payroll and inventory, pay debt, or fund other expenses.   Small business owners also are able to apply for an EIDL Advance of $1,000 per employee, up to $10,000. The loan advance, which will not have to be repaid, is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Find more information and an application link here. 

Prepare the following information before you apply:

  • Employer Identification Number (EIN)
  • Social Security Number (SSN)
  • Gross revenue for Feb 1 2019 - Jan 31 2020
  • Cost of goods sold for Feb 1 2019 - Jan 31 2020
  • Number of employees
  • Bank account and routing numbers

The deadline to apply for an Economic Injury Disaster Loan is September 30, 2020.  

Frequently Asked Questions

The $10,000 advance and the EIDL loan can both be accessed through the SBA Disaster loan Assistance site.

Apply Here 

If you have already applied for EIDL, please note you can only check application status at SBA customer service at 1-800-659-2955 (TTY: 1-800-877-8339) or email  disastercustomerservice@sba.gov(They are now staffed 24/7, and have added a chat feature.)  

Paycheck Protection Program (PPP) Loans 

PPP IconThe Paycheck Protection Program (PPP) offers up to $10 million in forgivable loans to small businesses to pay their employees and other expenses during the COVID-19 crisis. PPP loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. At least 60% of the forgiven amount must have been used for payroll. Loan payments will be deferred for six months. For more detailed information about forgiveness, see below under "What are the new PPP Loan forgiveness terms and how do I apply for loan forgiveness?"

Loans are provided through financial institutions/lenders. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years. All loans have an interest rate of 1%. 

OED continues to offer FREE assistance to small businesses and non-profits with their PPP loan and loan forgiveness applications, and has bilingual interpretation. For information on the status of your EIDL or PPP loan, contact SBA Office of Disaster Assistance directly at 1-800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov

Who can apply? 

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards. For more information about PPP loans: 

How and where to apply for a PPP loan? 

  • These loans are not provided directly by SBA, but through an approved lender.  Click here to search for a nearby approved SBA lender.

  • Individual lenders will have their own application process and required documents. For reference we have included a generic Application SBA Form for PPP loans here.  This contains core information required by lenders and can help you understand what you need for the lender PPP application. 

Preparing for a PPP Loan

Below is key information to help you prepare for PPP application. Your average monthly payroll is required information for the application.  Take the following steps to calculate your average monthly payroll:

1. Calculate the total annual payroll prior to COVID-19.  Payroll costs include the following costs for all part and full time employees:Salary, wages, commissions, tips or similar compensation (capped at $100,000 on an annualized basis for each employee);Payment of vacation, parental, family, medical, or sick leave;

  • Allowance for separation or dismissal;
  • Payments required for the provisions of group health care benefits including insurance premiums;
  • Payment of retirement benefits;
  • Payment of employer paid state and local taxes assessed on compensation;
  • For a sole proprietor or independent contractor wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee count as payroll.

2. Add these costs to calculate total payroll for the year.

3. Divide by 12 to get the average monthly payroll.

You can also get this number from your IRS 941 Employer's Quarterly Federal Tax Return form line 5E. Add up total in line 5E from previous four quarters before crisis, and divide by 12 to get average monthly payroll.

Applicants should also have the following documents available:

  • If you have an SBA EIDL since Jan 31 2020, have your loan balance
  • 2018 or 2019 Annual tax return
  • 2018 or 2019 Quarterly tax returns
  • Confirmation of ownership of the business on the business certificate of formation
  • Documentation of the payroll
  • Articles of organization
  • Operating Agreement (for LLCs, not required if not available)
  • By-laws (for corporations, not required if not available)
  • North American Industry Classification System (NAICS) Code (https://www.census.gov/eos/www/naics/

What are the new PPP Loan forgiveness terms and how do I apply for loan forgiveness? 

  • Businesses have a longer time period to spend loan proceeds. This time period, known as the Covered Period, has been extended from eight weeks to 24 weeks. 
  • The percentage of funds that can be used for non-payroll expenses has been expanded. Now, loans will be fully forgiven provided that businesses spend 60% of the loan amount (or more) on payroll and up to 40% on other approved expenses.

Find out more about these important changes in this joint statement from SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven Mnuchin. 

There are now two applications for PPP loan forgiveness: the EZ Forgiveness Application and the Full Forgiveness Application. You only need to fill out one of these applications. The EZ application requires fewer calculations and less documentation for eligible borrowers. Details are available in the instructions to the new EZ application form

SBA Express Bridge Loans 

Express IconExpress Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

Terms

  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan

SBA Express Bridge Loan Lenders

Deferment of existing SBA loans 

Debt Relief IconIf you have an existing business loan through SBA, The SBA Debt Relief program provides a reprieve to small businesses as they overcome the challenges created by this health crisis. If you have an existing loan with SBA, under the SBA Debt Relief program: 

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020. 

  • The SBA will pay the principal and interest of current 7(a) loans for a period of six months. 

If you have questions about this, please call the lender that provided your SBA loan.