COVID-19 Economic Injury Disaster Relief Program

On March 25, 2020, Congress and the President of the United States enacted an unprecedented relief package (The CARES Act) in response to COVID-19 and the Coronavirus impact on small business owners across the country.

For small business owners (businesses with fewer than 500 employees), the relief funds come through the SBA (Small Business Administration) via loans and grants.  It is important to note, depending on your eligibility, much of the loans provided are forgivable and converted into grants.  Equally important is if this debt is forgiven, the money is also considered tax-free!

The first step in the process, is to start the SBA Loan Applications.  There are TWO SBA programs that are of interest to business owners seeking financial aid:  The EIDL (Economic Injury Disaster Loan) and the PPP (Paycheck Protection Program).

SBA Loans

The Small Business Administration (SBA) has been providing unprecedented financial assistance to small business owners everywhere in America during the Coronavirus crisis. 

IMPORTANT: The SBA and SBA Lenders have been flooded with applications. If you have a banking relationship with an SBA Lender, we STRONGLY urge you to apply for the PPP Loan DIRECTLY through your lender if you are able to do so. If you are able to apply for the EIDL DIRECTLY through the SBA website, we strongly urge you to do so. If not, CorpNet is here to assist you.  Please remember, however, NO ONE (including CorpNet) can guarantee you loan approval or funds.

Applying for the SBA EIDL at SBA.gov.

During this process you will be asked whether you would like to be considered for an Economic Injury Disaster Loan advance of up to $10,000.  In the event you do not qualify for the loan, the $10,000 is forgiven and does not have to be paid back.  The debt is forgiven without any negative consequences to your credit.

These are unprecedented times, which is why this government offer is real.

How Can I Apply for EIDLs?

  1. Hire CorpNet as your consultant to assist you with the application process.
  2. Work with an accountant or financial advisor to assist you in preparing supporting documentation throughout the loan application process.
  3. Contact your bank directly and ask them whether they offer SBA Loans and how you can apply.
  4. Go directly to the SBA website and complete the SBA Disaster Loan Application Form yourself.

Who is Eligible for a COVID-19 Economic Injury Disaster Loan With the SBA?

In general, an applicant must be a business with less than 500 employees (exceptions exist-see the SBA website for further details).  In addition, all applicants must say “Yes” to all the following to be eligible for this loan and disaster relief program:

  • Applicant is not engaged in any illegal activity (as defined by Federal guidelines).
  • No principal of the Applicant with a 50 percent or greater ownership interest is more than sixty (60) days delinquent on child support obligations.
  • Applicant is not an agricultural enterprise (e.g., farm), other than an aquaculture enterprise, agricultural cooperative, or nursery.
  • Applicant does not present live performances of a prurient sexual nature or derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature.
  • Applicant does not derive more than one-third of gross annual revenue from legal gambling activities.
  • Applicant is not in the business of lobbying.
  • Applicant cannot be a state, local, or municipal government entity and cannot be a member of Congress.

The Covid-19 Economic Injury Disaster Loan Application Form

In addition to the basic information about your business (business name, address, etc..), most businesses will need to provide the following information:

  • Gross Revenues for the 12 months prior to January 31, 2020
  • Cost of Goods Sold for the 12 months prior to January 31, 2020
  • Any Lost Rents due to the Disaster
  • The number of employees as of January 31, 2020
  • A listing of owners and their personal information (SSN, Email, phone, citizenship)

In the Additional Information section, you will have to promise that you have not been in trouble with the Federal government and that you don’t engage in certain “obscene” activities.  In this section, there is also a section that allows for the information of a third party assisting you including a disclosure of any fees you may have paid to that third party for assistance in completing this form.

A Free, Emergency $10,000 in the EIDL Application

At the end of the EIDL application, the form asks whether you’d like to be considered for an advance of up to $10,000.  It works so quickly, that the form allows you to provide your banking information right there so that the SBA get can funds to you ASAP.

Screenshot of Intake Form With Relief Fund Destination

At the end of the application, you’ll be presented with a review of all the information you provided before you swear under penalty of perjury that all the information you provided is true.

Paycheck Protection Program

For small business owners who have employees, we wanted to direct your attention to the most important feature which is the Paycheck Protection Program.

If you are a small business that employs 500 employees or fewer, or certain other eligible large organizations, you are eligible for a loan under what is called the Paycheck Protection Program.

Note: Sole proprietors, independent contractors, gig economy workers, and self-employed individuals are also all eligible and can qualify for this relief program.

Important Paycheck Protection Program Details

  • The amount any small business is eligible to borrow is 250 percent of their average monthly payroll expenses, up to a total of $10 million.
  • This amount is intended to cover 8 weeks of payroll expenses and any additional amounts for making payments towards debt obligations such as rent, insurance premiums, utility expenses.
  • This 8-week period may be applied to any time frame between February 15, 2020 and June 30, 2020.
  • Seasonal business expenses will be measured using a 12-week period beginning February 15, 2019, or March 1, 2019, whichever the seasonal employer chooses.

How Can I Apply for the Paycheck Protection Program?

  1. Hire CorpNet as your Consultant to assist you with the application process.
  2. Work with an accountant or financial advisor to assist you in preparing supporting documentation throughout the loan application process.
  3. Contact your bank directly and ask them whether they offer SBA Loans and how you can apply.
  4. Go directly to the SBA website and complete the form yourself.

Additional Resources and Links

Have Questions or Need Help?

We know this can be a stressful time and all this information can be alittle overwhelming. The CorpNet team is here to help answer your questions.

Please contact us at 1-888-449-2638 and a specialist will help you with any concerns.

Any Estimated Processing Time quoted by CorpNet refers to the estimated processing time required for our agents to process your application. No one, including CorpNet, can quote or offer an estimated processing time for government or lender processing of your application. We are all at the mercy of government and lender backlogs and also any limitations that may occur as a result of funds availability. CorpNet is committed to serving you. However, CorpNet CANNOT guarantee submission, approval, or funding of your loan and/or grant requests as submission, approval, and funding are in the sole control of the SBA Lending institutions and the corresponding government institutions. CorpNet is committed to serving you and we are doing the best we can.

IMPORTANT: The SBA and SBA Lenders have been flooded with applications. If you have a banking relationship with an SBA Lender, we STRONGLY urge you to apply for the PPP Loan DIRECTLY through your lender if you are able to do so. If you are able to apply for the EIDL DIRECTLY through the SBA website, we strongly urge you to do so. If not, CorpNet is here to assist you. Please remember, however, NO ONE (including CorpNet) can guarantee you loan approval or funds.

For more information about financial aid programs available, please visit the SBA website:

https://www.sba.gov