My office's top priority throughout the ongoing COVID-19 outbreak is to keep Nevadans safe and ensure they have access to current and accurate information. Small businesses are the lifeblood of the Nevada economy, and as a member of the U.S. Senate Committee on Small Business & Entrepreneurship, my office is here to help our small businesses and employees weather this economic storm.
Below are resources to assist with applying for Small Business Administration Disaster Assistance Loans, FAQs about what the stimulus packages do for small businesses, and more. The most recent package, the CARES Act, was signed into law on March 27, 2020 and has significant resources for small businesses and their employees. Please check back often for new resources as the law is implemented and the new programs become available.
If you need additional small business assistance with a federal agency, please email SmallBusiness@rosen.senate.gov or call my office at 702-388-0205 or 775-337-0110. For other policy or scheduling questions, please click here.
Small Business Resources
Due to the coronavirus outbreak, the loans that are currently available to Nevada small businesses to offer immediate relief are the SBA Economic Injury Disaster Loans. These disaster loans are available to small business and private non-profit organizations with a low interest rate of 3.75 percent for small businesses and 2.75 percent for private non-profit organizations. For more information and to apply for a disaster loan, you can visit the SBA website.
Please note that eligible small businesses can still apply to already existing SBA loan programs. For more information on SBA loan products, please visit: https://www.sba.gov/funding-programs/loans.
The U.S. Small Business Administration (SBA) set the current interest rates for the COVID-related disaster loans. However, due to these small business concerns, I signed a letter to the SBA Administrator urging the SBA to make these disaster loans available at a 0 percent interest rate. You may be interested to learn, that the CARES Act, which I voted for and was signed into law on March 27, 2020, will provide additional relief and options for those who have already applied to an SBA Economic Injury Disaster Loan (EIDL). The SBA is currently working to implement these new features to disaster loans and will be available soon.
Under the CARES Act, small businesses affected by COVID-19 will be eligible to apply for an Emergency Economic Injury Grant (EEIG) of up to a $10,000 advance on an Economic Injury Disaster Loan (EIDL) for emergency capital. To access the advance, you first need to apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
The SBA is currently updating their system to implement the Emergency Grant, so small businesses can request an EIDL advance when they apply for the loan. This update will be available in the coming days. In the interim period, you can still apply for a full Economic Injury Disaster Loan, but will need to reapply for the advance when the system is updated with a streamlined application.
Once updated, the advance will be included in your EIDL application process. For more information and to apply, please visit SBA’s website. Under the CARES Act, several new loan programs and initiatives will be implemented including the Paycheck Protection Program (PPP), Economic Injury Disaster Loans and Emergency Economic Injury Grants, Small Business Debt Relief Program, and Counseling and Training resources. These loan programs and initiatives will soon be available, and you should visit the SBA website for updates at www.SBA.gov. Whether you have already received a disaster loan unrelated to COVID-19 or you receive a COVID-19 related EIDL and/or Emergency Grant between January 31, 2020 and June 30, 2020, you may also apply for a PPP loan. However, small businesses with disaster loans will not be eligible for the Small Business Debt Relief Program.
It depends based on the eligibility requirements for each loan program and the current outstanding loans your small business may have. For more information on eligibility requirements, you can access the Nevada Small Business Owner’s Guide to the CARES Act.
The new loans and grants authorized by the CARES Act that was signed into law on March 27, 2020, will soon be available. The U.S. Small Business Administration is working to implement the new loan programs and initiatives under the CARES Act and will provide more information soon on their website at www.SBA.gov.
The U.S. Small Business Administration (SBA) is currently offering Nevadans low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury because of the Coronavirus (COVID-19) outbreak. These loans were made available through the Coronavirus, Preparedness and Response Supplemental Appropriations Act, which Senator Rosen voted for and which was signed into law on March 6, 2020. The new law provided the SBA Administrator the authority to make disaster loans available to approved states, and Nevada is one of them.
Frequently Asked Questions
The SBA’s Economic Injury Disaster Loan (EIDL) program provides small businesses with working capital loans of up to $2 million to help overcome the temporary loss of revenue due to COVID-19. These loans can be used to pay fixed debts, payroll, accounts payable, or other bills that cannot be paid. The interest rate on these loans are 3.75 percent for small businesses and 2.75 percent for private, non-profit organizations without credit available elsewhere. Small Businesses and private, non-profit organizations with credit available elsewhere are not eligible to apply for this disaster loan. The maximum term on a loan is 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
Small businesses and private, non-profit organizations are eligible to apply for a disaster loan. A small business is defined by the SBA’s Size Standards in accordance with the North American Industry Classification System (NAICS) codes and SBA’s Size Standards Tool can be utilized.
SBA has coordinated with the Resource Partners, including Small Business Development Centers, (SBDCs) who can assist with the application process. For guidance on the application process, you contact a Nevada SBDC.
Once a borrower submits an application, approval timelines depend on volume. However, a typical timeline for approval is between 2 to 3 weeks and disbursement can take up to 5 days. Borrowers are assigned individual loan officers for servicing of the loan.
For additional information, borrowers should contact the SBA Disaster Assistance customer service center by calling 1-800-659-2955 or emailing firstname.lastname@example.org. You can also contact the Nevada SBA District Offices. For more information on small business guidance and loan resources during COVID-19, please visit the SBA's website.
Paycheck Protection Program
Economic Injury Disaster Loans & Emergency Economic Injury Grants
The Emergency Economic Injury Grants will provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first need to apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. Click HERE for FAQs about Economic Injury Disaster Loans & Emergency Economic Injury Grants.
Small Business Debt Relief Program
This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law. Click HERE for FAQs about the Small Business Debt Relief Program.
Counseling & Training
If you, like many Nevada small business owners, need a business counselor to help guide you through this uncertain time, you can seek guidance from a local Small Business Development Center (SBDC), Women’s Business Center (WBC), or SCORE mentorship chapter. These resource partners, and the associations that represent them, will receive additional funds to expand their reach and better support small business owners with counseling and up-to-date information regarding COVID-19. There will soon be a joint platform that consolidates information and resources related to COVID-19 in order to provide consistent, timely information to small businesses. Click HERE for FAQs about counseling & training.
If you are a government contractor, there are a number of ways that Congress has provided relief and protection for your business. Agencies will be able to modify terms and conditions of a contract and to reimburse contractors at a billing rate of up to 40 hours per week of any paid leave, including sick leave. The contractors eligible are those whose employees or subcontractors cannot perform work on site and cannot telework due to federal facilities closing because of COVID-19. If you need additional assistance, please reach out to your local Small Business Development Center, Women’s Business Center, SCORE chapter, or SBA District Office. You should also work with your agency’s contracting officer, as well as the agency’s Office of Small and Disadvantaged Business Utilization (OSDBU).