SBA Resource Center

COVID-19 Business Life Cycle

Timeline of how COVID-19 could affect small businesses.
Posted 4/2/2020

COVID-19 Life Cycle


In response to the novel coronavirus (COVID-19) pandemic affecting the business community across the country, Congress has announced several disaster-related expansions to small business financial relief options. These programs include two main categories:  

  • SBA Economic Injury Disaster Loan (EIDL)
  • Coronavirus Aid, Relief, and Economic Stability (CARES) Act 2020: Paycheck Protection Loan (PPL)

PLEASE NOTE:  Work with your banker to determine which program best fits your business needs.  Being proactive by reviewing your cash flow needs, reviewing these programs and gathering information can save time if you need cash flow for your business operations.

Updated 4/1/2020

Other notes that we have found out since the enactment of the law:

  • Borrowers may apply for an EIDL grant in addition to a loan under the EIDL and PPL provided the loans are not used for the same purpose.
  • You can apply for multiple companies with common ownership assuming they are separate legal entities.
  • Below is a summary of the loans.  We recommend that you work with your banker on the right loan for your business and the proper way to apply. You will have to submit the following information with your lender (as of 3/30/2020 these are the forms that are recommended to fill out.  Forms subject to change as programs develop but it will get you prepared overall).   

SBA Timeline

It is expected that it will take 21-31 days after an application is approved for funds to be disbursed. 

SBA Economic Injury Disaster Loan (EIDL)

The SBA Economic Injury Disaster Loan was authorized by Congress to make loans available to small businesses and private, non-profit organizations to help alleviate economic injury caused by COVID-19.

EIDLs are available for “affected businesses” to help them pay bills and other expenses during the period of time when their business is disrupted due to the pandemic. These loans may be used for fixed debts, payroll, accounts payable, and other bills that cannot be paid. The loans cannot, however, be used to refinance long-term debts.

  • Maximum Loan Amount: $2 million
  • Loan Term: Up to 30 years
  • Annual Interest Rates: 3.75% for businesses; 2.75% for non-profits
  • Timeline: It is expected that it will take 21-31 days after an application is approved for funds to be disbursed. 
EIDL Application

Posted 4/2/2020

  • Go to EIDL Application 
  • You can complete the EIDL application for a loan of up to $2Million. 
  • Loans will be given on a first come, first serve basis. 
  • As part of the loan, a $10,000 advance may be available in the form of a non-taxable grant. This grant can be funded to applicants in as few as three days. 
  • Loan funds can be used for purposes such as mortgage/rent, utilities and employee sick leave related to COVID-19 illness.
  • If you are incorporated, there are several other forms showing your monthly income and expenses, etc. so an accountant may be required. The legal and/or accounting costs appear to be reimbursable.
  • As with most government forms, some of the fields are not clear on what is requested but it is fairly straightforward. You can fill out the forms online and download them to your computer and then upload them to the SBA site.
SBA Disaster Loan Information

Posted 4/2/2020

A Disaster Assistance loan officer may request you to fill out the following additional forms:

Additional Filing Requirements

Additional Filing Requirements Economic Injury Disaster Loan (EIDL)
Posted 4/2/2020

Request for Transcript of Tax Return

Request for Transcript of Tax Return
Posted 4/2/2020

Schedule of Liabilities

Schedule of Liabilities (Notes, Mortgages and Accounts Payable)
Posted 4/2/2020

SBA Paycheck Protection Program Loan (PPP)

Key Points of a PPP Loan

Qualifying businesses include:

  • Businesses with up to 500 employees or which meet the applicable size standard for the industry as provided by SBA’s existing regulations.
  • Businesses in the accommodation and food services industries with more than one physical location but no more than 500 employees at each location.
  • Nonprofit organizations.
  • Eligible independent contractors and sole proprietors.

Loans will be available through SBA and Treasury approved banks, credit unions, and some nonbank lenders.

Aspects of the loan:

  • Borrowers can borrow 2.5 times their monthly payroll expenses, up to $10 million.
  • Annual interest rate: Cannot exceed 4%
  • Applicable uses for the loan proceeds include: payroll; rent; utilities; mortgage payments and other debt obligations.
  • In some circumstances, portions of this loan can be forgiven based on maintaining a certain percentage of payroll.
    • There are calculations to compute the forgiveness part so don’t assume any or all of it will be forgiven. 

Updated 4/2/2020

Question: The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an eight-week period; when does that eight-week period begin?

Answer: The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval.

Updated 5:00pm – 4/8/20

PPP Forgiveness Calculator

Updated 4/22/2020

PPP Small Business Guide and Checklist

This is a summary of this PPL loan and the calculations for forgiveness. CORONAVIRUS EMERGENCY LOANS – Small Business Guide and Checklist prepared by the U.S. Chamber of Commerce
Updated 4/2/2020


Frequently Asked Questions (FAQs)

PPP Loan Forms:

These forms and information are possibly some of the information you will need to be prepared for your banker.  Forms subject to change with additional guidance from SBA.
Updated 4/2/2020

Paycheck Protection Program (PPP) Overview

Small Business Paycheck Protection Program Overview
Posted 4/2/2020

Paycheck Protection Program (PPP) Information Sheet: Borrowers

Paycheck Protection Program (PPP) Information Sheet: Borrowers
Posted 4/2/2020

Paycheck Protection Program Application Form

Paycheck Protection Program Application Form Expiration Date: 06/30/2020
Posted 4/3/2020

Click here for Webinars

Click here for information on Employee Programs

Click here for Individual Stimulus Payment Information

Click here to return to the COVID-19 Resource Center

McMill CPAs & Advisors will make every attempt to provide our clients with the most up to date information. However, the information contained on this page can update hourly, and there may be instances where it is out of date. If you have questions on any of the items please contact your advisor.