I’d like to do a very quick public service announcement to alert you of something that can turn into a pretty big mistake. Things are moving so quickly with the CARES Act and Coronavirus relief that I almost didn’t catch it myself.

If you’ve locked your credit profile at Experian, Equifax, TransUnion, or another credit reporting agency, you could be in for an unpleasant surprise.

By locking your credit profile you are prohibiting banks from doing the due diligence related to the Payroll Protection Program loan or other funding options provided under Coronavirus relief programs.

The SBA, and their authorized banks, will be running credit checks and any mechanisms preventing this will delay loan approval and funding. No one wants that to happen!

Experian Credit Lock Screenshot

In the above example, you’ll see the red square shows the United States Small Business Administration was blocked from reading a credit report and this would need to be unlocked via the button at the top near the red arrow.

Here is a list of the most popular credit reporting agencies:

If you are unsure if your credit report is locked, now is the time to double-check and make sure the SBA and their authorized banks can view your credit history and score.

CARES Act Funding Options

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

 Paycheck Protection Program (PPP)Economic Injury Disaster Loans (EIDL)Emergency Economic Injury Grant
Type of FundingForgivable Loan (7a)Disaster Loan (7b)Disaster Loan Advance (Grant) (7b)
Allowed UsesRent
Payroll
Mortgage Interest
Debt Obligations Before 02/15/2020
Rent
Payroll
Mortgage Interest
Other Expenses That Can't be Paid Due to Disaster's Impact
Working Capital
Rent
Inventory
Payroll
Marketing
Dollar AmountUp to $10,000,000
2.5 Business' Average Monthly Payroll
Up to $2,000,000Up to $10,000
Percentage Rate1% Fixed3.75% Fixed for Businesses
2.75% Fixed for Non-Profits
Not Applicable
Payment Terms2 Years30 YearsNot Applicable
Forgiveness100% Is Eligible0% Is Eligible100% Is Eligible
Application Accesssba.gov/document/sba-form--paycheck-protection-program-borrower-application-formSBA.gov/page/disaster-loan-applicationsSBA.gov/page/disaster-loan-applications
Additional InformationLoans are available through SBA Approved Lenders. Many lenders are imposing strict eligibility requirements.To access the advance, you first apply for an EIDL and then request the emergency advance. The advance of up to $10,000 is paid within 3 days and does not need to be repaid under any circumstances.
Information to gather for a PPP Loan:
- Last 4 quarters of payroll tax forms (Form 941)
- A payroll report with each employee's 2019 compensation
- A general ledger showing health care benefits paid per employee
- A general ledger showing retirement benefits paid per employee

Since the Coronavirus relief programs are being rolled out quickly, other items may be required to obtain a PPP loan. Please contact CorpNet with any questions.

CorpNet Is Here to Help

CorpNet remains open and in full operation Monday through Friday from 7 a.m. until 5:00 p.m. PST to help. Our team is safely self-distanced and set up to work remotely with all of the necessary tools and resources to serve you. Contact us today at 1-888-449-2638 to discuss how we can help you.

Additional Resources & Links