COVID-19 Updates

CARES (Coronavirus Aid, Relief, and Economic Security) Act Key components for Business Owners

Paycheck Protection Program (PPP)

Loans for eligible small businesses for payroll obligations, emergency grants to cover immediate operating costs, and a mechanism for loan forgiveness where the small business can demonstrate that the loan proceeds were used for payroll and related costs.

  • Accepting applications through SBA approved lenders starting April 3
  • Up to 2.5X monthly payroll
  • Useful links:
    • PPP Information:

  • PPP Application:


Economic Injury Disaster Loan (EIDL)

EIDLs are loans available to small business borrowers that have suffered economic injury as a result of a pandemic or other disaster. Available advances of up to $10,000 (if 10 or more employees) to cover immediate operating costs of eligible businesses applying for EIDL assistance.

·         Applications accepted now

  • Can be applied for in addition to PPP

·         $10,000 advance does not have to be repaid, even if loan application is subsequently denied

  • Interest rate for Q2 undetermined, likely lower than the 3.75% in 1Q20
  • Useful links
    • Apply for advance of up to $10,000


Employee Retention Tax Credit (ERC)

Designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to

$10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. Employers must fall into one of two categories; business is fully or partially suspended by government order due to COVID-19; or employer's gross receipts are below 50% of the comparable quarter in 2019. –

  • Can’t claim if employer is recipient of PPP loan
  • Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll

taxes that have been withheld from employees’ wages by the amount of the credit.

  • Useful links
    • FAQs about ERC

  • Form 7200 (to file for credit)



The Small Business Owner’s Guide to the CARES Act: ab0a0cb558c8/1BC9E5AB74965E686FC6EBC019EC358F.the-small-business-owner-s-guide-to-the-cares-act-final-.pdf



PENNSYLVANIA Declaration 16360

(Disaster PA-00104)


occurring: January 31, 2020 & continuing


All counties within the Commonwealth of Pennsylvania; the contiguous Delaware county of: New Castle; the contiguous Maryland counties of: Allegany, Baltimore, Carroll, Cecil, Frederick, Garrett, Harford, and Washington; the contiguous New Jersey counties of: Burlington, Camden, Gloucester, Hunterdon, Mercer, Sussex and Warren; the contiguous New York counties of: Allegany, Broome, Cattaraugus, Chautauqua, Chemung, Delaware, Orange, Steuben, Sullivan, and Tioga; the contiguous Ohio counties of: Ashtabula, Columbiana, Mahoning, and Trumbull; and the contiguous West Virginia counties of: Brooke, Hancock, Marshall, Monongalia, Ohio, Preston, and Wetzel


Disaster Loan Assistance Available:

Application Filing Deadline: December 21, 2020

Economic Injury Disaster Loans (EIDLs) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery  period.

Credit Requirements:

  • Credit History – Applicants must have a credit history acceptable to
  • Repayment – Applicants must show the ability to repay the
  • Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available.  SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is


Interest Rates:

The interest rate is determined by formulas set by law and is fixed for the life of the loan. The maximum interest rate for this program is 3.750 percent.

Loan Terms:

The law authorizes loan terms up to a maximum of 30 years. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term.

Loan Amount Limit:

The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.

Loan Eligibility Restrictions:

Noncompliance – Applicants who have not complied with the terms of previous SBA loans may not be eligible. This includes borrowers who did not maintain required flood insurance and/or hazard insurance on previous SBA loans.

Note: Loan applicants should check with agencies / organizations administering any grant or other assistance program under this declaration to determine how an approval of SBA disaster loan might affect their eligibility.



Economic injury disaster loans cannot be used to refinance long term debts.

Insurance Requirements:

To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance. By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance. SBA requires that flood insurance coverage be the lesser of 1) the total of the disaster loan, 2) the insurable value of the property, or 3) the maximum insurance available.

Applicants may apply online, receive additional disaster assistance information and download applications at Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.