Volunteer Communications and FAQs

Morgan Martin
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SCORE Email Archive during COVID-19

FAQs

Q. Can a borrower take multiple draws from a PPP loan and thereby delay the start of the eight-week covered period?

No. The lender must make a one-time, full disbursement of the PPP loan within ten calendar days of loan approval; for the purposes of this rule, a loan is considered approved when the loan is assigned a loan number by SBA.1 For loans that received an SBA loan number prior to the posting of this interim final rule but have not yet been fully disbursed, the following transition rules apply:

  • The ten calendar-day period described above begins on April 28, 2020.
  • The eight-week covered period began on the date of first disbursement.

Notwithstanding this limitation, lenders are not responsible for delays in disbursement attributable to a borrower’s failure to timely provide required loan documentation, including a signed promissory note. Loans for which funds have not been disbursed because a borrower has not submitted required loan documentation within 20 calendar days of loan approval shall be cancelled by the lender, subject to the transition rules above. When disbursing loans, lenders must send any amount of loan proceeds designated for the refinance of an EIDL loan directly to SBA and not to the borrower.

The Administrator, in consultation with the Secretary, determined that requiring a single loan disbursement will best serve the interests of both borrowers and lenders and promote the purposes of the CARES Act. A single loan disbursement will eliminate the risk of delays in processing loan disbursement installments, advance the goal of payroll continuity for employees, and provide borrowers with faster access to the full loan amount so that they can immediately cover payroll costs.

 

Q. If someone applied for a small business loan in the past couple of weeks, do they now need to reapply with the newly released SBA form?

A. (As of 4/28/20) The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

The EIDL advance (separate track of the program) will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid. The advance is up to $10,000.

While new EIDL applications are not currently being accepted for loan program, businesses who have already applied may log into the portal to submit a 2-pager making them also eligible to receive the advance.

 

Q. My client received a rejection on their loan. What do we do? 

A. The SBA knows declines are high and are working on a way to lower that number. They will provide more guidance soon. In the meantime, they may be sending applicants to SCORE to guide businesses through triage and into resiliency. 

 

Q. Are farmers and agribusinesses included in the loan program options? 

A. Agricultural small businesses are excluded from the EIDL funds. However on April 13, 2020 the U.S. Secretary of Agriculture Sonny Perdue unveiled a one-stop-shop of federal programs that can be used by rural communities, organizations and individuals impacted by the COVID-19 pandemic. The COVID-19 Federal Rural Resource Guide (PDF, 349 KB) is a first-of-its-kind resource for rural leaders looking for federal funding and partnership opportunities to help address this pandemic.

 

Q. Is SCORE able to help non-profit organizations at this time?

A. Yes, SCORE can help nonprofits who apply for an EIDL loan.

If a business is not organized for profit (Exception: To the extent it does not negatively impact the goals or milestones established under this Award or detract from its core purpose) you may use project resources to counsel non-profit organizations that devote a significant portion of their activities to assisting entrepreneurs.

In addition, the US Treasury Paycheck Protection Program is available for 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. 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. All information can be found here: https://home.treasury.gov/cares

 

Q. What support is available for contractors (1099) and gig economy workers? 

A. At the third National Small Business Town Hall, held on April 10 by the U.S. Chamber of Commerce and Inc., a panel of business experts discussed the latest developments surrounding this important legislation with an emphasis on contractors and the self-employed. View the webinar here: https://www.uschamber.com/co/events/virtual/national-small-business-town-hall-inc-chamber-of-commerce-navigating-coronavirus-loans

 

Q. Is there any guidance regarding faith-based organizations and their ability to apply for the Paycheck Protection Program and Economic Injury Disaster Loan?

A. SBA Administrator Jovita Carranza announced [4/4/20] that SBA issued
guidance clarifying that all faith-based organizations impacted by Coronavirus (COVID-19) are
eligible to participate in the Paycheck Protection Program and the Economic Injury Disaster
Loan program, without restrictions based on their religious identity or activities, to the extent
they meet the eligibility criteria outlined in the CARES Act that was passed by Congress,
signed into law by President Trump, and implemented by the Paycheck Protection Act
Interim Final Rule. Read more here.

 

Q. What about general solicitation received on loan assistance? 

A. Beware of Scammers and people charging $500 to $2,500 to assist in loan application. The SBA loan application is FREE. Have a trusted advisor or family member assist.  Most in-business clients can complete. We’ve had clients contact SCORE too late as scammers charge $500 to assist in completing the application and never hear back.  

 

Q. What loan should I apply for?

A. Apply for All COVID 19 Loan Assistance, 7a Express, and to your Bank directly for the loan/grant 8-week employer, employee retention.

View Paycheck Protection Program FAQ here

 

Q. How much to apply for?

A. The Small Business Administration (SBA), in consultation with the Department of the Treasury, is providing this guidance to assist businesses in calculating their payroll costs for purposes of determining the amount of a Paycheck Protection Program (PPP) loan businesses can apply for.

How to Calculate Loan Amounts (SBA Provided) 

Nav CARES Act Calculator

Guidance from Verrill Law

Sample bank provided calculation sheet

 

Q. Do I need to resign from SCORE to apply for a loan?

A. No. SCORE volunteers are not ineligible for disaster loans. 13 CFR 105.302 does not apply to disaster loans (see below). 

§ 105.302 Assistance to employees or members of quasi-Government organizations. (a) The Standards of Conduct Committee must approve SBA Assistance, other than Disaster loans under subparagraphs (1) and (2) of section 7(b) of the Small Business Act, to a person if its sole proprietor, general partner, officer, director or stockholder with a 10 percent or more interest (or a household member) is a member or employee of a Small Business Advisory Council or is a SCORE volunteer.

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