Replay, Q & A and updates to SBA Economic Injury Disaster Loans

Mar 30, 2020

Updated April 1, 2020

Thank you to all those who joined us for the March 30 Webcast on Guide to SBA Economic Injury Disaster Loan Program. We will post answers to questions here and any updates to links, forms and processes.

Watch the replay

Download the forms (use as preparation)

Download the presentation as a pdf

SBA Online Application

Resources for Small Businesses – Senator Brian Schatz

Please know that the application process has been, and will continue to be, fluid. The official guidance for the application process has still not been published by the SBA (promised to be delivered by Friday) and we will post this guidance as soon as we get it.

In this interactive online live session, Gerry Smith, Director of Business Development for Maui Economic Development Board (MEDB), and Wayne Wong, Director of the Hawaii Small Business Development Center (SBDC), guide you through the steps and the form to apply for a loan to help your business through these challenging times.

No special software needed to view.  You can watch on your web browser on any device.  We wanted to make sure it was easy for you to access this important information.

Gerry Smith, Director of Business Development, MEDB

An MBA Graduate with a Project Management Professional (PMP) Certification, Gerry Smith has been doing business in the Pacific since moving from the east coast to work as Finance Officer for the Marshall Islands Nuclear Claims Tribunal in 1990. He has nearly 15 years in Defense Contracting, most of that in Honolulu. Gerry is currently the Director of Business Development for the Maui Economic Development Board.

Wayne Wong, Director, SBDC
Wayne Wong is a recovering “technologist” with over 30 years of Information Technology experience including several senior management positions during the heyday of the “dot com” era. He is also a co-founder and co-producer of the Grammy Award winning live concert series “Masters of Hawaiian Slack Key Guitar”. He currently utilizes his entrepreneur expertise as the Director of the Hawaii Small Business Development Center (SBDC), Maui Center, providing no-cost business counseling, advice and training to Maui County. Mr. Wong graduated from Kamehameha High Schools and holds a Bachelor of Science degree from the University of Washington and a Master of Business Administration degree from the University of Puget Sound.


Q & A

Q: Can Green Card holders (permanent residents) apply?

A: Taking a clue from SBA 7a loans (such as the new PPP)…   Non US citizens that are significant equity holders in a US small business can qualify for SBA financing if they are legal permanent residents (LPRs), also known as green card holders. If a potential borrower is not a legal permanent resident, things can get a little more complex.

Q: I have submitted all forms that they asked, for the Disaster Business Loan — through the portal on the website and I also emailed them. I did not get a confirmation number. Will someone be contacting me from the SBA? Should I have gotten a confirmation number?

A: Be reminded that the caseload at SBA is extreme. On Monday 3/30, the SBA indicated that indicated that the Upload-Application process did not have a confirmation process and the applicants should wait for notification this week 3-5 days before reapplying. Note that a couple of Maui applicants that uploaded last Thursday got application confirmation and case numbers by email (along with an invitation to go through the new streamlined website to apply for the new Advance option) So hang in there through this week.

Q: I was successful in submitting my loan online. I was also able to talk to a live person who told me someone from Texas (who would be my loan officer) would contact me via phone. I have not been contacted. Has anyone else been contacted by a Disaster Loan officer? If so, how long did that take? 

A: Do you already have a confirmation/case number from your online submission? That’s the first “contact”. From what we’re seeing, you’ll get an email notification/confirmation with a case number to confirm that your application has been received, assigned to a Loan Officer and is being vetted. Since last Friday’s addition of a possible Advance, that case number assignment email will invite you to the new streamlined web application to ask for an Advance -asking or not will not slow your original application. A Loan Officer will contact you only if more information needs to be submitted or more clarification is needed. Otherwise, you’ll get either an approval or denial (with the start of an appeal process). If you have not heard anything yet, applicants should wait for notification this week (3-5 days) before reapplying. Maui applicants that uploaded last week are starting to receive application confirmation and case numbers by email (along with an invitation to go through the new streamlined website to apply for the new Advance option) So hang in there. If you have a case number, then feel free to call the SBA Rep again and you should be able to ask for “the Loan Officer that is handling case number….”

Q: After reading various breakdowns about qualification for the “forgivable SBA loans”, I saw something that said “if your business has a high turnover rate, your loan may not be forgivable”. With all the misinformation that is being bantered about, can you clarify what they might mean by that statement? We have a small cafe in Lahaina and HighTurnover is the nature of business here. Mahalo in advance. 

A: We do not believe that high turnover has any impact on Economic Impact Disaster Loan qualification. Unfortunately, this session is about the Economic Injury Disaster Loan and your question pertains to the “Paycheck Protection Program” (PPP) which is a completely different loan product with a different application process and a “forgiveness” factor.  I don’t know the details of forgiveness related to an employee base that has a high turnover rate. Someone will have to dig into the 800 pages of the CARES Act. The PPP loan is still undergoing application process development and SBA is expected to go to banks with the process this coming Friday and that’s where you’ll be able to ask your question. We’ll follow with a webinar guidance for that PPP Loan product which is quite different from the EIDL.

You can learn more about the Paycheck Protection Program in this guide prepared Senator Brian Schatz.

Q: What would you do for a vacation rental with no employees that is set up under an LLC that is getting no income due to cancellations? 

A: Do you have monthly obligations listed on the 2022? If you owned a condo and it was used in a vacation rental business, you would still owe the monthly mortgage payment. You would have no revenue, due to the Covid-19 disaster, so the loan is required to cover the mortgage payment. 

Q: When filling out this form for an S-Corp, there are no liquidated assets or saving in the corporation but the owners have personal liquidated assets, do they need to be reported?

A: We believe that anyone who owns >20% of a business will have to fill out a personal financial statement. this is form 413d.

Q: On Form 413: Under real estate, is it the amount of equity that I enter, or the total value of the appraised value of the home? Or the difference of that and the amount still owed? 

A: You should use form 413D (413 is different). Otherwise appraised amount (Zillow?) less amount still owed = equity.

Q: 1 year loan deferment means after 1 year you still owe 3.75% interest even if you haven’t used the funds or no interest? 

A: You will owe interest on the balance for the entire year of deferred payments at 3.75%. It might make more sense for you knowing that it’s a payment deferment option, not a loan deferment.  You get the money immediately and the interest ‘clock starts but you don’t have to start making re-payments for up to a year. Another way you can think of it from a monthly payments perspective is that you’re moving a year’s worth of payments to the back of your loan period… “

Q: Prior bankruptcy question. The application asks whether or not the principal business owner has EVER declared bankruptcy. Question is this, will a prior bankruptcy from 10 years ago disqualify an applicant? What is the minimum number of years since the bankruptcy that would NOT disqualify an applicant? Or is answering yes going to disqualify the applicant even if it was 30 years ago? 

A: We do not know any direction given to loan officers regarding approving loans with past bankruptcies. We encourage you to apply and discuss any bankruptcies with your loan officer.

Q: When do you expect we would get money in our hands and should we have employees file for UI in the meantime? 

A: The SBA original intent at mid-March stated that they expected to  have money to successful applicants in 3 weeks -then when millions of applications came in we heard expect 4 or more weeks and lately the SBA is just saying their intent to expedite the vetting but no accurate estimate of timeframe was possible. However, with the passing of the CARES Act last Friday (3/27) a new EIDL optional Advance of “up to $10K” has been approved and this Monday morning, the SBA posted an online application for the Advance. The delivery criteria for this Advance component is that upon successful application acceptance (not approval but acceptance for review), an Advance will be sent via Bank direct deposit within 3 business days of the application acceptance date.   It is your decision regarding laying off employees or not which we cannot answer for you.  Although, it is an expressed hope in the CARES Act to keep employees employed and not the EIDL but another loan type, the “Paycheck Protection Program” (PPP) with loan forgivable aspects, is being offered to specifically address keeping Employees employed.  Unfortunately we’re back to the same question for you, will you be able to get the assistance money in time for what your tolerance level is…  sorry, we have no explicit answer for you.

Q: What’s the best way to contact SBA, to check whether our paper forms were received? There also was no option for $10,000 advance when I submitted the paper forms last week…can I call SBA to follow up?

A: If you have an acceptance/case number you can call the Help line and ask to speak “the Loan Officer handling your case #….”  If you submitted by Upload with no confirmation (yet) you should be getting an email stating that your application has been received and because of the new Advance option added last Friday, please feel free to apply/request for the Advance. Here’s what we’re seeing…

If you wish to apply for the Advance on your EIDL, please visit as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.

So, proactively if you’ve uploaded an application you probably don’t have to wait for the SBA to tell you to apply for the Advance, it’s probably safe to use the new streamlined web application now… you don’t want to wait for the SBA to tell you to do it later this week. 

Q:  Are owners expected to exhaust all personal capital and/or assets before borrowing/being eligible? 

A: Yes, but the requirement is for assets that can be easily liquidated. a savings account is easily liquidated. Real estate, a 401k, and an IRA are examples of assets not easily liquidated.

Q: In the employees section of the application should it be all employees or only full-time?

A: Since that field allows only one number, consider the number that most accurately represents the number of employees working in your business

Q: Aloha I have two businesses here on Maui. One a food truck (EIN) one I sell Real estate (SS#) both are impacted and I feel both will be for many months. How do I do this application…..together with an explanation? Suggestions 

A: The SBA filing is done by IRS Federal tax treatment. So if one business is sole prop and the other is an S-corp, or each business files separate tax returns, then you can make two applications.  There may be some personal duplication because of the way the SBA wants to see the personal info for 20% and higher equity owners but that’s fine.   On the other hand, If you have multiple companies but they all end up paying taxes under your personal 1040, then you must aggregate the numbers in a single filing utilizing the Is “Your Business Owned by a Business Entity?” dropdown arrow in the Business Owners Information section of the online application.

Q: What about if you are a nonprofit with a board but no “owner”?

A: Then fill out the application accordingly. there are several locations where you must identify that you are a non-profit, and note that there is a box asking for the cost of operations for 12 months.

We received a number of questions regarding the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Brian Schatz has some information on the unemployment program here.

Other useful resources can be found at