Small Business Development Center’s guide to CARES Act

Updated April 14, 2020 - 1:48 pm

In response to the COVID-19 pandemic that continues to threaten local economies across the country, the U.S. Small Business Administration has increased efforts to alleviate the hardship experienced by small businesses. While the situation is evolving rapidly and new information continues to be shared with local U.S. Small Business Administration affiliates, the Nevada Small Business Development Center is offering information about U.S. Small Business Administration Economic Injury Disaster Loans, the Paycheck Protection Program and the U.S. Small Business Administration Debt Relief Program.


This is the primary loan offered by the U.S. Small Business Administration and allows qualifying entities to borrow up to $2 million at 3.75 percent interest for small businesses and 2.75 percent interest for nonprofit organizations with terms up to 30 years. All Nevada counties have been declared eligible for EIDL. Eligible industries include, but are not limited to, restaurants, retailers, souvenir shops, travel agencies, wholesalers, owners of rental property, hotels, recreational facilities, charter boats, manufactures and sports vendors; sole-proprietors, independent contractors, gig-economy workers and self-employed individuals are also eligible to apply.

This loan also allows small businesses the opportunity for a $10,000 quick cash-infusion advance. The advance can be distributed one to three days after the completion of the EIDL. The business owner can keep these funds regardless of the approval of the EIDL, and this advance will be forgiven. The loan funds may be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred. An EIDL is not intended to replace lost sales or profits or for expansion. The U.S. Small Business Administration will view credit history and your ability to repay the loan and will expect collateral, if available, though it is not required for funding less than $25,000.

Businesses with existing U.S. Small Business Administration disaster loans may apply for the EIDL, but the loans may not be consolidated. The U.S. Small Business Administration has implemented automatic deferment for all existing Small Business Administration Disaster Loans through Dec. 31.

Nevada businesses can apply for the Economic Injury Disaster Loan at


The Paycheck Protection Program provides small businesses with one 0.50 percent interest loan to pay up to eight weeks of payroll costs (100 percent federally guaranteed through Small Business Administration local lenders). Payroll costs include all costs of an employee — salary or wages, commissions, bonuses, health insurance, retirement contributions and local and state payroll taxes — but cannot be used to compensate anyone in excess of salary based on $100,000 per year, those residing outside the U.S. or those already getting reimbursed for paid sick/family leave under the act passed two weeks ago. PPP funds also can be used to pay interest on mortgages, utilities and rent. This loan will be forgiven if staff and payroll are maintained. At least 75 percent of the forgiven amount must have been used for payroll. Borrowers should be prepared with payroll documentation before applying for this loan.

Small businesses with 500 or fewer employees — including nonprofits, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors — are eligible for PPP, while businesses with more than 500 employees are eligible in select industries.

Loan amounts may be up to 250 percent of average monthly payroll for the previous year, and payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Businesses will owe money when the loan is due in two years if PPP funds were used for anything other than payroll, mortgage interest, rent or utilities payments.

Starting April 3, small businesses and sole proprietorships could apply. Starting April 10, independent contractors and self-employed individuals could apply. Early application is encouraged because there is a funding cap and lenders will need time to process loans.


Under this program, the U.S. Small Business Administration will cover all payments on existing non-disaster U.S. Small Business Administration loans, including principal, interest and fees for six months. This relief will also be available to borrowers who take out U.S. Small Business Administration loans within six months of March 27.

“Please be wary of scammers during this time,” Sam Males, state director for the Nevada Small Business Development Center, said. “The U.S. SBA will not ask for money to complete a loan application and will NOT ask for personal information over email. All personal information is collected through U.S. SBA’s secure online portal. When in doubt, contact U.S. Small Business Administration’s Disaster Office for confirmation of any requests you receive.”

Contact the U.S. Small Business Administration Disaster Office at 1-800-659-2955 or

For more information on U.S. Small Business Administration Disaster Lending and other disaster resources for small businesses in Nevada, call 1-800-240-7094, or visit

“Details on the CARES funds continue to evolve,” Males said. “If you’re unsure what course of action would be most beneficial to your small business or if you have questions, sign up for no-cost, confidential counseling with the experienced Nevada Small Business Development Center professionals at”

The University of Nevada, Reno is a public research university committed to the promise of a future powered by knowledge. Founded in 1874 as Nevada’s land-grant university, the university serves more than 21,000 students. The University is a comprehensive doctoral university, classified as an R1 institution with very high research activity by the Carnegie Classification of Institutions of Higher Education. More than $800 million has been invested campuswide in advanced laboratories, residence halls and facilities since 2009. It is home to the University of Nevada, Reno School of Medicine and Wolf Pack Athletics, as well as statewide outreach programs including University of Nevada, Reno Extension, Nevada Bureau of Mines and Geology, Small Business Development Center and Nevada Seismological Laboratory. The University is part of the Nevada System of Higher Education. Through a commitment to student success, world-improving research and outreach benefiting Nevada’s communities and businesses, the University has impact across the state and around the world. For more information, visit

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