COVID19

Business Resources

COVID-19 Business Resources

derrickletter

Environmental Protection Agency (EPA)

EPA has released Guidance for Disinfecting, Cleaning and Addressing Water Quality Challenges Related to Coronavirus (COVID-19).
 
  • EPA Guidance can be located here.
 
For additional information on disinfecting, cleaning and addressing water quality, please visit EPA's website located here.

The Environmental Science, Policy, and Research Institute (ESPRI)

ESPRI has developed a brief guidance material to help those who are responsible for maintaining building water systems. As buildings have been shut down or used less frequently, building water quality degradation becomes a silent but serious issue. This document is meant as a starting point to bring awareness of the issue of water quality degradation in building plumbing when it is not used, or water use is significantly reduced. 
 
  • Coronavirus Building Flushing Guidance can be located here.
  • Reducing Risk to Staff Flushing Buildings Guidance can be located here.
 
For additional information and resources, please visit ESPRI’s website located here.

Southern Nevada Health District (SNHD)

The Southern Nevada Health District in response to reduced visitor occupancy within the Clark County area (due to COVID-19 pandemic) is reaching out to local hotel operations staff soliciting information regarding prevention of Legionnaires, Disease. If you would like additional information on how your facility can help prevent a Legionnaires' Disease outbreak, check out the Center for Disease Control and Prevention (CDC) links below.
 
SNHD strongly encourages businesses to complete and review the following: 
  • SNHD Baseline Survey COVID-19 Response located here.
  • CDC Prevent Legionnaires’ Disease Training can be completed here. 
  • SNHD Legionnaires’ Disease (Legionellosis) Resource Library can be located here.
 
For additional information and resources, please visit SNHD's website located here.

PAYCHECK PROTECTION PROGRAM ASSISTANCE FOR REDEVELOPMENT AREA BUSINESSES

The City is aware that many small businesses have had a difficult time applying for the Paycheck Protection Program (PPP) with lending institutions, especially if you do not have existing accounts or relationships with the banks. 

Through its relationship with the National Development Council (NDC), a Community Development Financial Institution, the City of Henderson would like to announce that small business owners whose business is located within one of the City’s redevelopment areas may now apply for the Paycheck Protection Program directly with the NDC at www.ndconline.org/ppp. For a map of redevelopment areas within the City of Henderson, please click here.

It is our hope that the long-standing relationship between the City of Henderson and the NDC for more than 15-years will assist you in your efforts to successfully apply for PPP funds. For additional information, contact the Redevelopment Agency at 702-267-1515.

SBA’s HUBZone Program

In response to COVID-19, SBA has launched a HUBZone program which provides small businesses in historically under-utilized business zones more flexibility to comply with requirements. There are three qualified areas in Henderson for HUBZone. 

To locate a qualified area, please refer to the HUBZone map located here: https://maps.certify.sba.gov/hubzone/map#center=53.461168,-101.998589&zoom=5

Read this fact sheet for more details located here: https://sba.gov/brand/assets/sba/resource-partners/HUBZone-COVID19-factsheet-508-v2.pdf

Learn more about the HUBZone program: https://sba.gov/hubzone

ATTENTION:
IF YOU ARE A SMALL BUSINESS, DON’T MISS OUT ON THE ADDITIONAL FUNDING FOR THE PAYCHECK PROTECTION PROGRAM!!

On Tuesday, April 21st, 2020, the Senate has passed a $484 billion bill to inject additional funding into SBA disaster loan programs — both the Paycheck Protection Program (PPP) and the Emergency Injury Disaster Loan (EIDL) — and was passed this afternoon, April 23rd by the House of Representatives. The bill comes after weeks of negotiations between Congress and the White House and after the initial funding for the programs was largely exhausted last week. It’s expected to be signed by the president within the next day.

The details:

What does this mean?

  • The Senate has approved additional funding and once the funds are available, we strongly encourage our Henderson business owners to apply immediately for the loans that your business is qualified for.
  • It’s expected that the funds will run out within the first 48 hours once the funds are accessible.

How will I know when the funds are accessible?

  • Funds are expected to be accessible shortly after the next bill is signed by the President. Please stay in contact with your lender for the most up to date information.

What to do if by the time you apply, the funds have already run out and no longer accept applications?

  • The City of Henderson’s Economic Development Department will continue to communicate any information on additional funding for SBA’s loans. We will continue to be a resource for your business through this tough time.

5 Tips to Assist with the SBA Loan Application:

  1. Homework: Self educate as much as possible. There are many available resources to you, please visit the top COVID-19 Business Resource Pages:
    1. Southern Nevada Region Business Resource Page by Las Vegas Global Economic Alliance: https://www.lvgea.org/business-resource-guide/
    2. City of Henderson’s Economic Development Business Resource Platform: https://hendersonnow.com/covid19/
    3. City of Henderson’s Business Resources: https://cityofhenderson.com/fire/covid-19-info/business-resources
  2. Accuracy: Ensure all information on the loan application is accurate, review and double check your answers before submitting application. The more accurate your application is, the less chance of experiencing any hold ups with SBA. Some recommendations we have received is to make sure to have the right ownership percentage structure on PPP loan application and triple check calculations for qualifying payroll.
  3. Consistency: Ensure that the entity on the PPP loan application is the same entity that has the banking relationship (ideally deposit, not line of credit). Name of entity should also match the name on supporting documents (or have documents demonstrating relationship).
  4. Submitting the Application: Don’t leave any blanks in your application. Some lending banks require for applications to be submitted through their online portal. If your lending bank does not have an online portal, we strongly recommend for you to communicate via email or by phone. Be persistent, follow up is the only way to ensure that your application has been accepted.
  5. Timeliness: Be responsive and accessible to your lender. Quick and accurate communication is key. Continue to be available during this process.

We continue to assist you each step of the way, our team is available by phone, email or you may request an appointment.

Office Hours:  Monday through Thursday, 7:30 a.m. – 5:30 p.m.
Email:  cohecon@cityofhenderson.com
Phone: (702) 267-1650, voicemails will be returned within 24-48 hours.
Website: https://hendersonnow.com

Thank you,

Derek Armstrong


salon

Grants for Beauty Professionals Provided by The Horst M. Rechelbacher Foundation – COVID-19 Relief Funds

Generously funded by the Horst Rechelbacher Foundation, these $1,000 grants will provide financial assistance to beauty professionals or students of beauty programs, whose lives have been drastically changed by the mandated closures in response to COVID-19. Available to beauty professionals and students who are unemployed and cannot maintain their regular income during this time.

These one-time $1,000 grants will be distributed directly to the applicant to provide temporary financial relief. 

Applications are open starting April 1, 2020.

Grant Program for Small Businesses with 3-20 Employees

Attached is a link to a $5,000 grant program for small businesses located in an economically vulnerable community that employ 3-20 employees and have been harmed financially by COVID. It is a very simple application process and is being funded by the US Chamber of Commerce Foundation. The link to the application will open today at 12 PM PST. There is a limited amount of dollars so if you have networks that could benefit from this I would advise them to apply right at 12 or ASAP.

https://savesmallbusiness.com/

Main Street Lending Program

The Federal Reserve has announced that it is establishing a Main Street Lending Program (Program) to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF). Lending program at a glance: Loan Amounts are $1 million to $25 million for new loans and $150 million for expanded loans, secured overnight financing rate (SOFR), origination fee of 1%, potential 1% facility fee on new loans, term amount would be 4 years with a 1 year deferment, and the basic eligibility criteria would be no more than 10,000 employees or $2.5 billion in annual revenue.

Term sheets can be located here. For additional information on Main Street Lending Program, please visit their website here.

wine-dinner

Service of Alcohol with Meals Curbside

March 26, 2020

To Whom it May Concern:

Due to the ongoing closure to the public of dine-in options at restaurants and other food service establishments, the City of Henderson is making the following optional change to your license type. As of 5 p.m. on March 26, 2020, until the declared end of the closure of non-essential businesses or for the next 30 days, whichever occurs first, any establishment holding a restaurant with bar, tavern, beer/wine on-sale, full-liquor on-sale or brewery license may serve beer/wine/spirits/liquor in conjunction with meals being picked up curbside at the establishment.

If you choose to serve alcoholic beverages with your meal take-out, you must email the City of Henderson Business Operations Division at FILicensedivision@cityofhenderson.com. Please include in the body of the email the name of the business, address of the business, current City of Henderson business license number and contact phone number for the owner or key employee. The City will need this information for compliance reasons.

Once the email has been submitted to the City of Henderson you are free to begin service of alcohol with meals being picked up curbside at your location. This does not include delivery of alcohol to residences or hotels by your staff or third-party delivery services.

Below, you will find the rules and regulations that accompany the ability to serve alcoholic beverages in this manner.

Thank you,

Michael Cathcart

Business Operations Manager


Time Limited Liquor Permit – Curbside Pickup.

The director, or his designee, may authorize the issuance of a time limited liquor curbside pickup permit. A time limited liquor curbside pickup permit authorizes the holder of a valid City of Henderson restaurant with bar, tavern, beer/wine on-sale, full-liquor on-sale or brewery license to serve alcoholic beverages for which the business is regularly licensed in conjunction with meals being picked up curbside at the establishment.

Such permit is valid for thirty calendar days or the declared end to the closure of non-essential businesses in the State of Nevada and may be renewed at the discretion of the director or his designee. Time limited liquor permits may be conditioned, amended, suspended, revoked or rescinded as deemed appropriate by the director in the interest of public safety, health and welfare. The permittee is responsible to ensure compliance with all laws pertaining to the sale, service and distribution of alcoholic beverages.

  1. Time limited liquor permits are subject to all state and local license conditions and regulations and must further comply with the following:
    1. An order for curbside pickup must be picked up by the purchaser at the licensee’s premises.
    2. All deliveries to curbside must be made by the licensee or an employee of the licensee.
    3. The person placing the order must be of legal age to purchase alcoholic beverages.
    4. Delivery of the alcoholic beverage shall only be made to a person of legal age to purchase alcoholic beverages.
    5. All alcohol not in its original, sealed container must be dispensed into aluminum, ceramic, glass, plastic or stainless steel containers and must be packaged in way that prevents access while in a vehicle to insure compliance with state and local traffic laws on open alcohol containers in vehicles.
    6. All containers must be capped in accordance with health department regulations.
    7. Licensee shall only sell or distribute beer or wine in paper or plastic cups; and
    8. Licensee shall not deliver at curbside alcohol to an individual who is intoxicated.

       

  2. There are no fees associated with the time limited liquor permit. The licensee must send an email to FILicensedivision@cityofhenderson.com and include the name of the business, address of the business, current City of Henderson business license number and contact phone number of either the owner or key employee of the establishment.

 


cannibis

Cannabis Retail Stores and Medical Dispensaries

Cannabis retail stores and medical dispensaries that were required to shut down public store fronts due to the Declaration of Emergency, Directive 3 issued by Governor Sisolak are permitted to continue cannabis sales by direct delivery to the customer until further notice.

sbaimage

Federal Help for Small Businesses

The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state's governor, SBA will issue an Economic Injury Disaster Loan declaration.
 
SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for a small business. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

Applicants may apply online using the link below, call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. 
 
We encourage you to spread the word about this important resource. 

Apply for Disaster Assistance Here

 

small business senate committee

Paycheck Protection Program FAQs for Small Businesses

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 a top-line overview of the program CLICK HERE
  • If you’re a lender, more information can be found HERE
  • If you’re a borrower, more information can be found HERE
  • The application for borrowers can be found HERE

As of 04/27/2020 - On Monday, April 27,  the Small Business Administration (SBA) has resumed accepting Paycheck Protection Program Loan Applications from approved SBA bank lenders on behalf of eligible borrowers. 


Where can I apply for the Paycheck Protection Program?

You can apply for the Paycheck Protection Program (PPP) at any lending institution that is approved to participate in the program through the existing U.S. Small Business Administration (SBA) 7(a) lending program and additional lenders approved by the Department of Treasury. This could be the bank you already use, or a nearby bank. There are thousands of banks that already participate in the SBA’s lending programs, including numerous community banks. You do not have to visit any government institution to apply for the program. You can call your bank or find SBA-approved lenders in your area through SBA’s online Lender Match tool. You can call your local Small Business Development Center or Women’s Business Center and they will provide free assistance and guide you to lenders.


Who is eligible for the loan?

You are eligible for a loan if you are a small business that employs 500 employees or fewer, or if your business is in an industry that has an employee-based size standard through SBA that is higher than 500 employees. In addition, if you are a restaurant, hotel, or a business that falls within the North American Industry Classification System (NAICS) code 72, “Accommodation and Food Services,” and each of your locations has 500 employees or fewer, you are eligible. Tribal businesses, 501(c)(19) veteran organizations, and 501(c)(3) nonprofits, including religious organizations, will be eligible for the program. Nonprofit organizations are subject to SBA’s affiliation standards. Independently owned franchises with under 500 employees, who are approved by SBA, are also eligible. Eligible franchises can be found through SBA’s Franchise Directory.


I am an independent contractor or gig economy worker, am I eligible?

Yes. Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are all eligible for the Paycheck Protection Program.


What is the maximum amount I can borrow?

The amount any small business is eligible to borrow is 250 percent of their average monthly payroll expenses, up to a total of $10 million. This amount is intended to cover 8 weeks of payroll expenses and any additional amounts for making payments towards debt obligations. This 8 week period may be applied to any time frame between February 15, 2020 and June 30, 2020. Seasonal business expenses will be measured using a 12-week period beginning February 15, 2019, or March 1, 2019, whichever the seasonal employer chooses.


How can I use the money such that the loan will be forgiven?

The amount of principal that may be forgiven is equal to the sum of expenses for payroll, and existing interest payments on mortgages, rent payments, leases, and utility service agreements. Payroll costs include employee salaries (up to an annual rate of pay of $100,000), hourly wages and cash tips, paid sick or medical leave, and group health insurance premiums. If you would like to use the Paycheck Protection Program for other business-related expenses, like inventory, you can, but that portion of the loan will not be forgiven.


When is the loan forgiven?

The loan is forgiven at the end of the 8-week period after you take out the loan. Borrowers will work with lenders to verify covered expenses and the proper amount of forgiveness.


What is the covered period of the loan?

The covered period during which expenses can be forgiven extends from February 15, 2020 to June 30, 2020. Borrowers can choose which 8 weeks they want to count towards the covered period, which can start as early as February 15, 2020.


How much of my loan will be forgiven?

The purpose of the Paycheck Protection Program is to help you retain your employees, at their current base pay. If you keep all of your employees, the entirety of the loan will be forgiven. If you still lay off employees, the forgiveness will be reduced by the percent decrease in the number of employees. If your total payroll expenses on workers making less than $100,000 annually decreases by more than 25 percent, loan forgiveness will be reduced by the same amount. If you have already laid off some employees, you can still be forgiven for the full amount of your payroll cost if you rehire your employees by June 30, 2020.


Am I responsible for interest on the forgiven loan amount?

No, if the full principal of the PPP loan is forgiven, the borrower is not responsible for the interest accrued in the 8-week covered period. The remainder of the loan that is not forgiven will operate
according to the loan terms agreed upon by you and the lender.


What are the interest rate and terms for the loan amount that is not forgiven?

The terms of the loan not forgiven may differ on a case-by-case basis. However, the maximum terms of the loan feature a 10-year term with interest capped at 4 percent and a 100 percent loan guarantee by the SBA. You will not have to pay any fees on the loan, and collateral requirements and personal guarantees are waived. Loan payments will be deferred for at least six months and up to one year starting at the origination of the loan.


When is the application deadline for the Paycheck Protection Program?

Applicants are eligible to apply for the PPP loan until June 30th, 2020.


I took out a bridge loan through my state, am I eligible to apply for the Paycheck Protection
Program?

Yes, you can take out a state bridge loan and are still be eligible for the PPP loan.


If I have applied for, or received an Economic Injury Disaster Loan (EIDL) related to COVID-19 before the Paycheck Protection Program became available, will I be able to refinance into a PPP loan?

Yes. If you received an EIDL loan related to COVID-19 between January 31, 2020 and the date at which the PPP becomes available, you would be able to refinance the EIDL into the PPP for loan forgiveness purposes. However, you may not take out an EIDL and a PPP for the same purposes. Remaining portions of the EIDL, for purposes other than those laid out in loan forgiveness terms for a PPP loan, would remain a loan. If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
 
 

now-hiring

Employers who may be hiring in the
Southern Nevada area:

PLI Cards; 1220 Trade Drive, North Las Vegas, NV  89030; https://www.plicards.com/careers

Barclay Cards; hiring for apprenticeship position online only; https://search.jobs.barclays/ and search Henderson, NV

U. S. Census; https://www.jobhat.com/ Need help with applications?  Call Suzanne Reed, 702.573.2547 or Migna Woodard, 702.216.1135

Costco; https://www.costco.com/jobs.html

Whole Foods; https://careers.wholefoodsmarket.com/global/en

Sam’s Club; https://careers.walmart.com/?xid=ftr:careers

Pepsi; https://www.pepsicojobs.com/main

Target; https://corporate.target.com/careers/

Albertsons; https://www.albertsonscompanies.com/careers/albertsons-careers.html

Lowe’s; https://jobs.lowes.com/?_gl=1*51vdlq*_gcl_dc*R0NMLjE1ODQ1NTY5OTEuQ0xPejVlUFdwT2dDRlYtWHhRSWRkNTRFWGc.

Dollar Tree; https://jobs.lowes.com/?_gl=1*51vdlq*_gcl_dc*R0NMLjE1ODQ1NTY5OTEuQ0xPejVlUFdwT2dDRlYtWHhRSWRkNTRFWGc.

Vons; https://www.albertsonscompanies.com/careers/vons-careers.html

Dollar General; https://www.careerarc.com/job-map/dollar-general-corporation/campaign/45977

**Information subject to change - Updated March 24, 2020


wecanhelp

Employer Resources

DETR
Rapid Response is a free program that assist employers if they have to lay off employers or shut down. For information on Rapid Response assistance call (775) 284-9660 or (775) 684-0362 or email: detrinfo@detr.nv.gov

Department of Labor (DOL)
The Department of Labor has compliance assistance materials to help workers and employers understand their rights and responsibilities under the Worker Adjustment and Retraining Notification Act (WARN) https://www.dol.gov/agencies/eta/layoffs/warn

Small Business Administration (SBA)
www.sba.gov/disaster
The Small Business Administration provides low-interest disaster loans to help businesses and homeowner’s recover from declared disasters.
To apply visit the above link.
Applications deadline December 17, 2020

Nevada JobConnect
Employers who may have open positions to fill, please call the Nevada JobConnect Business Services Office at 702.486.0129.  You may also access the process to post a job at: https://nevadajobconnect.com/Page/Post_a_Job_Opening

TechImpact
TechImpact has free resources to help nonprofits prepare staff for working remotely. Their Education and Outreach team has created a website: https://preparerespondserve.org/

Department of Business & Industry

The Department of Business and Industry has a Resource Center with information to help start or grow your business in Nevada. http://business.nv.gov/Resource_Center/Business_Resource_Center_New/

Governor’s Office of Economic Development (GOED)

GOED has created an online business resource page. For further details please visit   https://www.diversifynevada.com/additional-resources/covid-19-disaster-response-online-business-resources/

**Information subject to change - Updated March 24, 2020

 


City of Henderson Support for Licensed Businesses

 

SBA Economic Injury Disaster Loans for COVID-19


March 19, 2020

The current coronavirus disease (COVID-19) outbreak may have significant economic implications for businesses and nonprofit organizations including negative impacts on imports, global supply chains, and tourism. Furthermore, if COVID-19 becomes widespread or prolonged it may slow global growth, and some businesses may be forced to furlough or lay off workers. This Insight considers whether the Small Business Administration (SBA) could provide economic injury disaster loans (EIDLs) to eligible businesses and organizations that have suffered substantial loss as a result of COVID-19.

EIDL Overview
EIDLs provide eligible small businesses and nonprofit organizations up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Loan proceeds can only be used for working capital necessary to enable the business or organization to alleviate the specific economic injury and to resume normal operations. Interest rates for EIDLs are statutorily set at 4% per annum or less and can have maturities up to 30 years.

EIDLs are available only to businesses and private and nonprofit organizations that are located in a declared disaster area, have suffered substantial economic injury, are unable to obtain credit elsewhere, and are defined as small by SBA size regulations.

Potential Triggers
There are three disaster declarations that could make EIDL available:
1. the SBA Administrator issues an EIDL declaration under the Small Business Act upon certification from a state governor that at least five small businesses have suffered substantial economic injury as a result of a disaster;
2. a physical disaster declaration is issued by the SBA Administrator under the Small Business Act in response to a gubernatorial request for assistance; or
3. the President issues a major disaster declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act that authorizes both Individual Assistance (IA) and Public Assistance (PA).

EIDL Declarations
Though it has never been tested for an infectious disease outbreak, on February 4, 2016, the SBA made EIDLs available to Genesee and adjacent counties in Michigan following a disaster declaration request from Michigan’s governor related to public water contamination in Flint, MI. Given that precedent which the SBA referred to as a “historic health emergency,” it could be argued that an EIDL declaration by the SBA Administrator would be the most likely type of trigger to provide EIDL assistance to businesses. However, an EIDL declaration for COVID-19 would (1) require a governor to certify that five or more business concerns are economically injured as a result of COVID-19, and (2) require the SBA Administrator to determine that COVID-19 meets the definition of a disaster under the Small Business Act.

Five-Business Threshold
EIDL declarations cover designated counties, but COVID-19 may be geographically diffuse. As a result, there may be instances in which a governor has five or more business economically affected by COVID-19 that are not in the same political subdivision.

Disaster Definition under the Small Business Act
It is unclear whether COVID-19 meets the Small Business Act’s definition of a disaster. The definition states the term “disaster” means a sudden event which causes severe damage including, but not limited to, floods, hurricanes, tornadoes, earthquakes, fires, explosions, volcanoes, windstorms, landslides or mudslides, tidal waves ..., riots, civil disorders or other catastrophes, except it does not include economic dislocations (15 U.S.C. 636 (b)).

13 C.F.R. §123.2 elaborates on the definition:

Disaster declarations are ... specific geographic areas ... damaged by floods and other acts of nature, riots, civil disorders, or industrial accidents such as oil spills. [They] are sudden events which cause severe physical damage, and do not include slower physical occurrences such as shoreline erosion.... However, for purposes of economic injury disaster loans only, they do include droughts and below average water levels in ... the United States that supports commerce by small businesses ... Past examples include ocean conditions causing significant displacement ... as well as contamination of food or other products for human consumption....

Strictly interpreted, COVID-19 may not be considered a “sudden event” and not tied to a “specific geographic area.”

It should be noted, however, that EIDL has been provided for incidents that are not sudden such as droughts and, as just mentioned, the Flint water contamination incident (which arguably is also a public health incident). This may suggest to some that the definition of a disaster under the Small Business Act could be interpreted broadly to include an EIDL declaration.

Major Disaster and Physical Disaster Declarations
As mentioned earlier, major disaster declarations under the Stafford Act that provide IA and PA also trigger EIDL. Potential issues of interest associated with major disaster declarations are twofold: (1) the list of incidents in the definition of a major disaster under the Stafford Act does not include outbreaks of infectious diseases. In the past some incidents were considered ineligible due to definitional reasons (such as the major disaster denial for the Flint water contamination incident); (2) the thresholds used to determine whether to provide IA and PA are based on damages to homes and public infrastructure. It is unlikely COVID-19 would cause physical damages.

Emergency declarations under the Stafford Act do not have the definitional and threshold challenges posed by a major disaster declaration. Emergency declarations, however, do not authorize EIDL.

Though the thresholds for a physical disaster declarations under the Small Business Act are significantly lower than major disaster declarations (generally, at least 25 homes or businesses or a combination of the two have uninsured losses of 40% or more), as noted it is unlikely a COVID-19 incident would cause physical damages.

Issues for Congress
Given the existing statutory constraints, if Congress wishes to make EIDL assistance available to small businesses and nonprofit organizations affected by COVID-19, it may consider amending the Small Business Act to provide explicit statutory assistance following an infectious disease outbreak, or amending the Stafford Act to make EIDL assistance available under an emergency declaration.

Author Information
Bruce R. Lindsay
Analyst in American National Government

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.


Download the letter as a PDF


SBA Economic Injury Disaster Loans COVID-19
Frequently Asked Questions


Question: Congress passed disaster loans for small businesses. What happens now?

Answer: SBA is working directly with Governors to provide targeted, low interest loans to small businesses and private nonprofit organizations that have been severely impacted by the Coronavirus (COVID 19) outbreak.

Question: My state received approval, but it wasn’t state-wide. Will SBA allow more counties to be approved?
Answer: In some instances, state wide declarations are not being made. Instead, they are on a county basis. If your state is experiencing new cases in undeclared counties after an SBA approval, Governors can amend their approved declaration by working with SBA on the county specific findings. 

Question: My state received approval so where do small businesses apply?
Answer: Small businesses in eligible areas may apply for an EIDL online at:
https://disasterloan.sba.gov/ela/ or they can also reach out to their local SBA District Offices.

Question: If small businesses need help with their applications, are there any other resources available to help them fill out the applications?
Answer: SBA has also coordinated with the Resource Partners, including Small Business Development Centers, who can assist with the application process. The list of SBDCs is available online at: https://www.sba.gov/local assistance/find/? type=Small%20Business%20Development%20Center&pageNumber=1

Question: How do I know if a small business is eligible?
Answer: SBA’s Office of Disaster Assistance works with state emergency management divisions to certify certain areas as an “eligible area.”
https://disasterloan.sba.gov/ela/Declarations/Index
The list of eligible areas is also available online at: https://disasterloan.sba.gov/ela/Declarations/Index or https://www.sba.gov/disaster assistance/coronavirus covid 19.

The list is updated periodically and on the same day a new declaration is approved.

Your state may not have been approved yet, but a county in your state may have been approved as a contiguous county on a neighboring states approval which allows small employers in those counties to apply for loans.

Please check often to see if your area has been added.


Question: What is an Economic Injury Disaster Loan?
Answer: The SBA’s Economic Injury Disaster Loan (EIDL) program provides small businesses with working capital loans of up to $2 million to help overcome the temporary loss of revenue.

The loans may be used to pay fixed debts, payroll, accounts payable, or other bills that can’t be paid because of the COVID-19 outbreak.

The interest rate is 3.75 percent for small businesses without credit available elsewhere, and businesses with credit available elsewhere are not eligible to apply for assistance.

The maximum term is 30 years.

A small business is defined by the SBA’s Size Standards in accordance with the Native American Industry Classification System (NAICS) codes and SBA’s Size Standards Tool can be utilized.

Question: What’s the timeline like?
Answer: Once a borrower submits an application, approval timelines depend on volume. Typical timeline for approval is 2-3 weeks and disbursement can take up to 5 days. Borrowers are assigned individual loan officers for servicing of the loan.

Question: Where can I find more information?
Answer: For additional information, borrowers should contact the SBA Disaster Assistance customer service center by calling 1-800-659-2955 or emailing disastercustomerservice@sba.gov

They can also visit SBA.gov/disaster for more information.