COVID-19 Small Business Loans

Unfortunately, the impacts of the Coronavirus are being felt on all levels of our society, including small businesses. To provide relief of these temporary losses, Congress passed the CARES (Coronavirus Aid, Relief, and Economic Security) Act on March 27. How can the CARES Act help your agency?

Here is a list of eight most commonly asked questions by small business owners:

  1. What loans are available to help Small Businesses during COVID-19?

Currently, there are two government loans (the Economic Injury Disaster Loan and the Paycheck Protection Loan) that can help independent agencies dealing with backlash from COVID-19. Applying for these loans is a quick process!

  • The Economic Injury Disaster Loan issued by the Small Business Administration makes loans available to small businesses to help alleviate economic loss due to Coronavirus. This loan applies to current and future disaster assistance declarations related to COVID-19.
  • The Paycheck Protection Loan set aside roughly $350 billion in government-backed loans from private banks to help small businesses survive the Coronavirus outbreak. According to, these loans can be converted to grants, which means that if your agency meets certain requirements, the loan won’t have to be paid back (please consult the loan to determine if this is applicable to your agency).
  1. How do you get these loans?
  1. How much can you borrow?
  • The Economic Injury Disaster Loan from the Small Business Administration can be up to two million dollars of working capital for up to a 30-year term at 3.75%. Not everyone will qualify for that amount. You can apply for this with a $10,000 advance that can be forgiven.
  • “The Paycheck Protection Loans can be for two and a half months of average payroll or $10 million — whichever is less,” according to the loan application .
  1. Do you need to repay these loans?
  • You have to repay the Economic Injury Disaster Loan from the Small Business Administration, but payments can be deferred for one year after the beginning of the loan.
  • All (or some) of the Paycheck Protection Loan can be forgiven if it’s converted into a grant. There are specific requirements your agency must meet in order for it to be forgiven. Read about these requirements here!
  1. Can you apply for both loans?

Yes! You can apply for and receive both loans.

  1. Do I need good credit to qualify for these loans?
  • The Paycheck Protection Loan requires no collateral and no personal guarantee.
  • The Economic Injury Disaster Loans are given based on credit score, but no tax returns are required.
  1. Your bank doesn’t seem to know anything about the Paycheck Protection Loan. What can you do?

Private banks are still working out the specifics, but they are expected to be ready by April 3, 2020. Our advice is to wait until that date to inquire again and direct their attention to the details released by the Treasury Department here. Bottom line: You will still need to apply through a private bank.


Make sure you have an income statement from the previous 12 months (from January 31 back) and your employee identification number before applying. COVID-19 has brought hardship to all U.S. business owners, and unfortunately, a lot of small businesses are feeling the strain of reduced revenue. If you find your agency is heavily saddled with Coronavirus related burdens, take advantage of these resources!


*This information is subject to change pending updates from the Federal Government, more details from ASNOA’s Comptroller to come.


For any questions, contact Anthony Rossini at

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