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Small Business Webinar and FAQ

Q: What are the loans available to me through the Small Business Administration? 

A: The current loans available to small businesses are Paycheck Protection Program loans, Emergency Injury Disaster Loans, and SBA Express Bridge Loans.

Q: Who qualifies for a Paycheck Protection Program (PPP) loan and what can it be used for?

A: This program is for any small business with less than 500 employees, 501(c)(3) non-profit organizations, 501(c)(19) veterans organizations, or Tribal businesses (see sec. 31(b)(2)(C) of the Small Business Act) affected by coronavirus/COVID-19.

The loan is for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll).

The maximum amount of the loan is 250% of average monthly payroll from the past year capped at $100K per employee, and up to $10M total.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. This loan has a maturity of 2 years and an interest rate of 1%. 

For more specifics, see THIS HANDY GUIDE provided by the Small Business Development Center.

Q: Which banks will be participating in the Paycheck Protection Program?

A: This is still in the process of being worked out. We should have answers in the next couple of weeks. Banks have to decide if they want to participate in the PPP, and whether or not they will offer loans to existing and/or new customers.

Q: Can I pay my employees with the PPP if they can’t come to work due to COVID-19?

A: Yes, but you may want to look into NEW PAID LEAVE POLICIES in the Families First Coronavirus Response Act too. You might also look into the State of Oregon’s WORK SHARE program.

Q: How do I calculate salary if my employee’s income is largely based on tips or commission?

A: Estimate what that employee would have made during this time, including tips/commission, by averaging what they made monthly over the past year prior to your business being affected by COVID-19. Your lender can also help you calculate this.

Q: What if my employee’s salary is above $100k per year?

A: The PPP caps out at $100k per employee, but your EIDL could make up the difference.

Q: Who qualifies for an Economic Injury Disaster Loan (EIDL) and what can it be used for?

A: This program is for any small business with less than 500 employees, private non-profit organization, or 501(c)(19) veterans organizations affected by COVID-19.

The loan can be used to Pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. It does not cover lost sales, and it cannot be used to pay off existing debt.

This loan can be for up to $2 million and the term is up to 30 years. You can also qualify for an advance loan of up to $10,000 when you apply. The interest rate is 3.75% for businesses and 2.75% for non-profits.

For more specifics, see THIS HANDY GUIDE provided by the Small Business Development Center. 

Q: Do sole proprietorships, independent contractors and self-employed persons (including LLCs and S Corps), as well as faith-based organizations (including schools) all qualify for the PPP and EIDLs?

A: Yes, as long as they meet the listed qualification standards listed for the PPP or EIDLs.

Q: Can I apply for both the PPP and an EIDL?

A: Yes, but you cannot use the PPP and an EIDL to pay for the same expenses. Here is a side-by-side comparison of the benefits each of the different SBA loans provide.

Q: What do I do if I applied for an EIDL before March 29th or am unsure as to the status of my EIDL application?

A: If you applied for an EIDL before March 29th, please visit the SBA PORTAL to reapply. If you are unsure as to the status of your EIDL application you may have to reapply. Please call 1-800-659-2955 if you have further questions about the status of your EIDL.

Q: How can I help my small agricultural business?

A: Please contact the United States Department of Agriculture’s Rural Development office online or at (866) 923-5626. You may also qualify for a PPP loan or an EIDL (see above information).

Q: Who can give me advice on how to help my business during the COVID-19 crisis?

A: Your local Small Business Development Center can counsel you on which services and loans are available to your business. Please consult their website to find your local office and to get specific information on the resources available to small businesses during the COVID-19 crisis. They have also published a guide to all of the actions you should be taking for your business right now. You can find all that and more information on services provided by Small Business Development Centers at

Q: What do I do if I have more questions?

A: Please reach out to my office at (202) 225-5711. We will do our best to answer your questions and point you in the right direction.