I received an Economic Injury Disaster Loan – Can I apply for the Paycheck Protection Program?

Response received from SBA HQ on 4/3/2020: Yes, you are still eligible to apply for the Paycheck Protection Program even if you applied for or received an SBA Economic Injury Disaster Loan.

If your Economic Injury Disaster Loan was not used for payroll costs, it does not affect your eligibility for a Paycheck Protection Program loan.

If your Economic Injury Disaster Loan was used for payroll costs, your Paycheck Protection Program loan must be used to refinance your Economic Injury Disaster Loan. The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years. Economic Injury Disaster Loan assistance provides up to $2 million loan per business and are long-term, low-interest rate at 3.75% for businesses and 2.75% for non-profits and a maturity of up to 30 years

Any advance up to $10,000 on the Economic Injury Disaster Loan will be deducted from the loan forgiveness amount of the Paycheck Protection Program loan.

For example, a borrower may obtain a loan from the Paycheck Protection Program and use those funds to pay for 8 weeks of payroll or employee retention. They may wish to then dedicate their entire EIDL funds towards working capital, notes payable and accounts payable that do not duplicate the funds provided through the Paycheck Protection Program. If the EIDL loan was used for payroll expenses, the borrower must refinance the EIDL loan with the PPP loan which carries a lower interest rate as well as a shorter maturity period.

Visit Paycheck Protection Program & EIDL Loan Advance for more information. 

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1. Is my business allowed to remain open? Is my business considered "essential"?
2. What will happen if a “non-essential business” stays open?
3. Where can I find the publicly available database webpage of Woodland restaurants, cafes, breweries, and wineries offering curbside and home delivery – and how can I be included in this database?
4. What if I am unable to pay my rent during the closure?
5. Will my utilities be shut off if I can’t pay my bill?
6. How will the City help me protect my store or property if needed?
7. What resources are available if I have to lay off workers, if I lose my job or if I need to close my business?
8. What should I be doing to protect my employees from COVID-19?
9. I operate a food service facility - what practices should I follow to keep my patrons safe?
10. Where can I go to get daily updates on COVID-19 cases in Yolo County?
11. If my employer is not taking appropriate safety measures to protect me, who do I contact?
12. Where can I get guidance documents and assistance in SPANISH about COVID-19 for employees and employers?
13. Does the City of Woodland have financial assistance programs for businesses?
14. What federal and state programs are available to help my businesses?
15. If I am applying for / received an Economic Injury Disaster Loan, is my small business eligible to participate in the Paycheck Protection Program?
16. I received an Economic Injury Disaster Loan – Can I apply for the Paycheck Protection Program?
17. Do I have to choose either the Economic Injury Disaster Loan OR the Paycheck Protection Program?