Economic Injury Disaster Loan (EIDL) Advance

Summary: Small businesses will be eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The advance will be available within 3 days of applying for the EIDL. You must apply for an EIDL to receive the advance.

How to Apply:  

  • Click Here to apply online for an EIDL
  • When you apply, request an emergency advance.

You will not have to repay the advance even if your application for the loan is denied.

Eligible Businesses:

  • Entities currently eligible for SBA disaster loans
  • Business entities with 500 or fewer employees
  • Independent contractors
  • Cooperatives and employee-owned businesses
  • Tribal small businesses
  • Private non-profits of any size

You must have been in business as of January 31, 2020.

Eligible Use of Loans: Loan must be used for working capital 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.

Availability Dates: Between January 31, 2020 and December 31, 2020

Can I apply for other SBA loan programs: Yes, however, the amount forgiven under a Paycheck Protection Program loan will be decreased by the $10,000 advance.

Paycheck Protection Program Loans

Summary: The Paycheck Protection Program loans are 100% federally-guaranteed SBA loans established for the purpose of helping employers retain their employees and help businesses cover their operating expenses during the COVID-19 crisis for the period between February 15, 2020 and June 30, 2020.

Things are changing almost daily with the Paycheck Protection Loans. The below information is based on the April 2, 2020 SBA Interim Final Rule.

Loan Amounts: 2 ½ times the average monthly payroll in the prior year up to $10 million

Note: Allowable payroll costs for employers are the sum of payments of any compensation with respect to employees that is a: salary, wage, commission, or similar compensation; payment of cash tip or equivalent; payment for vacation, parental, family, medical, or sick leave; allowance for dismissal or separation; payment required for the provisions of group health care benefits including insurance premiums; payment of any retirement benefit; and payment of state or local tax assessed on the compensation of the employee.

Allowable payroll costs of sole proprietors, independent contractors, and self-employed individuals are the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in one year, as pro-rated for the covered period.

Eligible Businesses:

  • Small business that otherwise meets the SBA’s size standard
  • Business entities with 500 or fewer employees
  • Sole proprietor
  • Independent contractor
  • Self-employed individual who regularly carries on a trade or business
  • Tribal business that meets the SBA size standard
  • A 501(c)(3) with fewer than 500 employees
  • A 501(c)(19) Veterans Organization that meets the SBA size standard
  • Special eligibility may apply if:
    • You are in the accommodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis
    • If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company the normal affiliation rules do not apply

Eligible Use of Loans:

  • Payroll Costs – (excludes individual employee compensation above $100,000 per year, prorated for the covered period; certain federal taxes, compensation to employees whose principal place of residence is outside of the US, and sick and family leave wages for which credit is allowed under the Families First Act.)
  • Group health care benefits during period of paid sick, medical, or family leave, and insurance premiums
  • Interest payments on mortgage obligations
  • Rent/lease payments
  • Utilities
  • Interest on other debts incurred before the covered period

Loan Fees: None

Loan Terms:

  • Up to 6 months deferral principal and interest payments
  • Up to 2 years
  • 1.0% interest rate
  • Certain SBA requirements waived
    • No personal guaranties
    • No collateral
    • No proving recipient cannot obtain funds elsewhere
    • No SBA fees (may still have to pay lender processing fee)
    • No prepayment fee

Loan Forgiveness:

  • Loan forgiveness is available for actual paid payroll costs (does not include payments to independent contractors), salaries, benefits, rent, utilities and mortgage interest during the eight weeks following disbursement of the loan. However, not more than 25% of the loan forgiveness amount may be attributable to non-payroll costs.
  • The forgiveness amount is subject to reduction if there is a workforce reduction or a reduction in the salary or wages of an employee.
  • The amount forgiven is reduced proportionally by any reduction in employees retained compared to the prior year.
  • Borrowers that rehire workers previously laid off due to the COVID-19 crisis will not be penalized for having a reduced payroll at the beginning of the period.
  • Reductions in workforce, salaries and wages that occur from February 15, 2020 to April 26, 2020 will be disregarded for purposes of reducing the forgiveness amount so long as the reductions are eliminated by June 30, 2020.
  • The forgiven amounts are not taxable income to the borrower.


  • Businesses claiming the Employee Retention Credit CANNOT receive a Payroll Protection Program loan.
  • Businesses that have debt forgiven under the Payroll Protection Program are not eligible for the Social Security tax deferral.

How to Apply:  

  • Click Here for more information
  • Apply for loan forgiveness with the lender servicing the loan

It is important to note that there are multiple provisions available for small businesses and self-employed individuals that have suffered losses due to COVID-19 and who are trying to retain employees during this time. In some cases, the use of more than one provision is allowed and in others, it is not. We strongly recommend that a business owner consults with their accounting and/or tax advisors for assistance in choosing the proper program that fits their circumstances. If you would like to reach out to a HAS team member for help, please contact us.