SBA COVID-19 Economic Injury Disaster Loan Facts

What a ride this journey has been just since the beginning of March to now. There are so many moving parts and information being shared across the internet about COVID 19 relief efforts. We wanted to compile a daily digest of each portion as it related to business owners and just people. Also, we want to correct any inaccurate information being passed around the internet. 

Small business owners in all U.S. states and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is for the Loan program that will help with working capital up to $2 million to assist with the temporary hardship. If you are approved for the advance the funds will be made available within three days via direct deposit to your account you provide in the application process. Even better new is that this loan advance will not have to be repaid. 

Some basic qualifications to be aware of are:  

You MUST be a small business. Small business in this case is defined by one of the following criteria being met:  

  • Business with no more than 500 employees 

  • Applicant is an indivbudal who operates under a sole proprietorship with or without employees (yes, independent contractors count too)

  • A cooperative with no more than 500 employees 

  • an Employee Stock Ownership Plan (ESOP), as defined in 15 U.S.C. 632, with not more than 500 employees. 

  • a tribal small business concern, as described in 15 U.S.C. 657a(b)(2)(C), with not more than 500 employees. 

  • business, including an agricultural cooperative, aquaculture enterprise, nursery, or producer cooperative, that is small under SBA Size Standards found at 

  • a business with more than 500 employees that is small under SBA Size Standards found at 

  • a private non-profit organization that is a non-governmental agency or entity that currently has an effective ruling letter from the IRS granting tax exemption under sections 501(c),(d), or (e) of the Internal Revenue Code of 1954, or satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law, or a faith-based organization.


Once you meet one of the eligibility criteria listed above, there is a list of disqualifies that will automatically make you ineligible: 

  • Applicant is not engaged in any illegal activity (as defined by Federal guidelines)


  • No principal of the Applicant with a 50 percent or greater ownership interest is more than sixty (60) days delinquent on child support obligations.


  • Applicant is not an agricultural enterprise (e.g., farm), other than an aquaculture enterprise, agricultural cooperative, or nursery. 

  • Applicant does not present live performances of a prurient sexual nature or derive directly or indirectly more than minimum is gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature. 

  • Applicant does not derive more than one-third of gross annual revenue from legal gambling activities. 

  • Applicant is not in the business of lobbying. 

  • Applicant cannot be a state, local, or municipal government entity and cannot be a member of Congress. 


If you have made it past this point the additional information needed upfront will be a series of questions about your company, EIN, ownership, and make sure you have your gross income and COGS for the 12 month period ending 01/31/2020. (If you need help gathering this financial information contact us and we can help) Keep in mind also that these funds will be awarded to companies who are in need of economic relief due to COVID 19 and if your company was already struggling or close to closing prior to the COVID outbreak you will most liekly not receive approval. Go apply now at 

If loans are not an option and you want to brainstorm other ideas or change up your business model to adapt to the current situation we would also love to help you in anyway. We are doing free 30 minute consults with any small business or independent contractor.  

Keep an eye our for our next article on the Paycheck Protection Program.

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