SBA Economic Injury Webinar Information

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SBA Webinar Resources!

Thank you to everyone who attended yesterday’s webinar. As promised to all the registrants here are some resources and a link to the webinar. We compiled many of the unanswered questions in an FAQ below. If your questions are still not answered please reach out to Will or Taylor.

Click here to access the recorded webinar

You may access the slide deck here:  Webinar PowerPoint Slides

SBA Economic Injury Disaster Program FAQ

These questions were compiled after the SBA Loan Program webinar with eXplore Lawrence and the KU Small Business Development Center on March 25, 2020. It is important to note that things are moving quickly and may change as things progress.

If the website is not working, you could choose to email or mail the paper documents to the following addresses. You will receive confirmation that your application was completed.


Mail: U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, TX 76155

All paper forms can be found here:
However, the SBA is encouraging people to check the website often and to use it during off-peak hours.

Q: Is Douglas County on the list of eligible counties for the SBA Disaster loan program?
A: Yes, all counties in Kansas are covered. When a person starts to complete their online application, they’ll need to select “Kansas” and their county. Once they do that, all disaster declarations for that county will be listed. For this COVID-19 crisis, they must select that specific declaration.

Q: What businesses are eligible to apply for an EIDL?
A: SBA’s Economic Injury Disaster Loans (or working capital loans) are available to small businesses, small agricultural cooperatives, small aquaculture businesses, and most private non-profit organizations.

Q: What is the criteria for EIDL loan approval?
A: Credit history, repayment, and eligibility.

Q: How much can I borrow with an EIDL?
A: Eligible entities may qualify for loans up to $2 million.

Q: What are the loan terms?:
A: Interest rates are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years. While payments are deferred for the first 12 months, interest begins to accrue at disbursement.

Q: What are the basic EIDL filing requirements?
Completed SBA loan application (SBA form 5 or 5C)
Tax Information Authorization (IRS Form 4506T) for the applicant, principals, and affiliates
Complete copies of the most recent Federal Income Tax Return
Schedule of Liabilities (SBA Form 2202)
Personal Financial Statement (SBA Form 413)

Q: Are there any specific situations in which I might have to provide additional documentation?
A: If the business is less than 12 months old or ownership has transitioned in the last twelve months, you may be required to provide additional documentation. All loans above $200,000 will require additional analysis and may also need additional documentation.

Q: How is the amount I qualify for calculated?
A: Half of one year’s gross profit (revenues – COGS). Essentially, six months of operating expenses.

Q: What are the collateral requirements?
Economic Injury Disaster Loans over $25,000 require collateral.
SBA takes real estate as collateral when it is available.
SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available.

Q: Let’s say I am offered $20,000 but only need $10,000. Do I have to accept the full amount?
A: You are not obligated to take any or all of the amount offered to you.

Q: Can a 10% owner be included on the application because it will improve the look of the finances?
A: Owners over 20% will be required to provide information. However, information from any owner can be included.

Q: As a sole proprietor, are there any additional steps we need to take?
A: No additional steps, to our knowledge. You will fill out form 5C on the disaster loan program.

Q: What is the turnaround time for the EIDL application?
A: The original estimates that we heard was three weeks of processing time and another one to two weeks for funds to be disbursed. However, as more applicants are taken, processing time is increasing. Be sure to use a phone number and email address that you are checking frequently.

Q: Where can you print the paper forms just to have as reference?
A: All of these forms are available in the Disaster Loan Application Portal: These forms will allow business owners to organize their data/information prior to going online to complete the electronic application (to save time while completing the application).

Q: Is there anyone I can call if I run into problems while filling out the application?
A: You can reach the SBA Customer Service Center at 800-659-2955 or

Q: How do I know that my application has been received?
A: You will receive a confirmation once your application has been received.

Q: If I have multiple businesses, do I need to fill out separate EIDL applications?
A: You will need to fill out an application for each business. There will be different documentation required for each business.

Q: When you refer to cost of goods sold, I assume that you are including direct labor as well as material. I guess my confusion is that if these loans are to assist in paying employees, why
would the largest part of the hourly wage workers be excluded in determining the loan amount? Maybe my assumption of your definition of gross profit is incorrect?
A: In some industries, it’s pretty standard to put DIRECT labor in COGS and only INDIRECT would go outside of COGS. This can also vary by bookkeeping practice. This would likely be something that you’d deal with further down the line with the application.

Q: Can a small C corp apply for a loan to pay employees?
A: The Economic Injury Disaster Loan is for working capital. Paying employees is certainly one use, but not the only one.

Q: My company’s services fit into a grey area of being “essential”. I see many other similar companies continuing to work. Is there someone we can contact to get advice on this? It impacts whether we are going to have layoffs or not.
A: You can try to reach the Lawrence Douglas County Public Health Coronavirus Line 785-856-4343. The full Douglas County “stay at home” order can be found here:

Q: Can I apply for unemployment for my part time workers or just full time?
A: According to multiple business owners that answered this question during our call, you can apply for both. You can find more information here:

Q: Are there any 0% interest loans?
A: To the best of our knowledge, not at the moment. Note that the federal stimulus package may include something, but at last check, this bill was not yet signed law. We would also note that with complicated, $2 trillion stimulus legislation, there may be unexpected lag times between legislation and implementation.

Q: Where can I find additional information about the WorkShare program?
A: is a good place to start.

Q: Do we need to do the mass filing for unemployment or is individual filing okay?
A: We have heard from the Kansas Department of Labor that they prefer mass filings. The unemployment spreadsheet can be found here: