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COVID-19: Paycheck Protection Program & Economic Injury Disaster Loans
April 16, 2020 Eugene Uhm & Maureen Whelan, Business Development Specialists

The Corona Virus (COVID-19) has reached pandemic levels and has taken a toll on citizens around the world, including America.  Because of this pandemic, the U.S. government has passed several new public laws to help American families, small businesses, nonprofit organizations, financial institutions, and health care providers.   One of the recent legislative priorities that has passed is the C.A.R.E.S. Act (Coronavirus Aid, Relief, and Economic Security Act).

Two provisions that are part of the C.A.R.E.S. act and can offer immediate assistance to small businesses are the: Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL). Let’s take a look at both of these relief programs and see how they are designed to help!

What groups may have an interest in the Paycheck Protection Program?

The first section (1102) provides definitions for businesses that are covered: "self-employed” as defined within the Families First Coronavirus Response Act (Public Law 116-127) , individuals of nonprofit organizations defined as Internal Revenue Code 501c(3) organizations, and Federal Banking agency, described as an insured depository institution per the Federal Deposit Insurance Act (12 U.S.C.)

What does it cover?

It describes the term “payroll costs” as the sum of payments of any compensation that is with respect to employees that is:

  • Salary, wage, commission or similar compensation;
  • Payment for vacation, parental, family, medical, or sick leave;
  • Allowance for dismissal or separation;
  • Payment required for provisions of group health benefits, including insurance premiums;
  • Payment of retirement benefits;
  • State or local assessed on compensation of employees;
  • Sum of payment of any compensation or income of a sole proprietor, independent contractor, that is a wage, commission, income, or net earnings from self-employment or similar compensation, and that is in the amount of no more than $100,000 in one year, as prorated for the covered period; and
  • Exclusions are also covered within

You will also find guidance about loan registration, increased eligibility for certain small businesses and organizations and the allowable uses for the covered loans beyond payroll costs.

How to apply?

You can download a copy of the U.S. Small Business Administration Paycheck Protection Borrower Application Form to apply with an eligible lender.

Another critical COVID-19 Relief Program offered by the SBA is the Economic Injury Disaster Loans (EIDL).

EIDL - What Is It?

The Economic Injury Disaster Loans (EIDL) is one of the relief programs created by the CARES Act. EIDLs are lower interest loans, up to $2 million depending on the amount of economic injury. Small businesses with 500 employees or less are eligible to apply. There are no early prepayment penalties or upfront fees charged by the SBA. The repayment term is determined by the businesses ability to repay the loan.

How Does It Help Me?

While EIDLs are not meant to replace sales or revenue, EIDLs are designed to help businesses maintain cash flow, meet necessary financial obligations, and provides relief from economic injury that was directly caused by the disaster.

Another benefit of the EIDL is the Economic Injury Disaster Loan Emergency Advance. The loan advance will provide temporary financial relief up to $10,000 to small business owners who are currently experiencing difficulties due to the COVID-19 pandemic. What makes this so unique is that this loan advance does not have to be repaid.

How Do I Apply?

All small businesses (less than 500 employees) nationwide (all 50 US States, Washington D.C., and U.S. .territories) are eligible to apply for the EIDL. To find out if you are classified as a small business, you can visit the SBA Size Standard , enter your 6 digit Norther American Industry Classification Code (NAICS) and your business’ annual revenue from the last 3 years. If you need additional assistance, click here to find your local Small Business Development Center (SBDC), Women’s Business Center, or SCORE mentorship chapter.

EXIM COVID-19 Relief Efforts

The PPP & EIDL are two of several relief programs now available for U.S. businesses. In addition, the Export-Import Bank of the United States (EXIM) has created several new programs to help U.S. business exporters. Free consultations are available to learn how EXIM can help or you can read more here about the latest response efforts from EXIM during the COVID-19 pandemic crisis.

Get a Free Export Finance Consultation Today!






EXIM’s Blog postings are intended to highlight various facets of exporting, but the postings are not legal advice, and are not intended to summarize all legal requirements associated with exporting.