Small Business Loans in CARES Act Stimulus Package

Note: The SBA resumed accepting PPP loan applications as of April 27. The SBA is currently not accepting new EIDL applications; however, NAHB will be fighting for additional funding in the next congressional stimulus package.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides loans for small businesses to help deal with payroll issues. With a median employee base of five employees among our Builder members and 10 among our Associate members, funding to help weather an uneven and uncertain building landscape is important to ensuring there is adequate and affordable housing.

Economic Injury Disaster Loans

Small business owners and some nonprofits, including 501(c)(6) organizations, in all U.S. states and territories are currently eligible to apply for low-interest Economic Injury Disaster Loans (EIDL) of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue due to the COVID-19 response.

Applicants may request an advance in the amount of $10,000 to be delivered within three days of the request.

This advance must be used to:

1. Provide sick leave to employees unable to work due to the effects of COVID-19;
2. Maintain payroll to retain employees;
3. Cover increased costs of materials due to interrupted supply chains;
4. Make rent or mortgage payments; or
5. Repay other obligations that cannot be met due to revenue losses.

An applicant will not be required to repay this advance if used for these purposes, even if they are subsequently denied a loan under the EIDL program. Qualified businesses can apply online at disasterloan.sba.gov/ela.

For application assistance, please contact an SBA customer service representative at 800-659-2955 or email disastercustomerservice@sba.gov.

Note: The SBA is currently not accepting new EIDL applications. However, if you were in the process of applying for a EIDL loan and have an application number that begins with the No. 3, your application remains in the queue and you do not need to reapply for a loan.

Paycheck Protection Program

Small and medium sized businesses (with fewer than 500 employees) are also eligible to apply for SBAs expanded Paycheck Protection Program (PPP). This program is not provided through SBA directly, so the first step to qualifying for a loan is to find an SBA approved lender in your community. Your lender can guide you through the application process and determine which loan product will work best for your business.

Allowable uses of these loans include:

1. Payroll costs; 
2. Certain costs related to the continuation of group health care benefits;
3. Employee salaries (including commissions or similar);
4. Mortgage, rent, and utilities payments; and
5. Interest on any other debt obligations that were incurred before the covered period.

A loan recipient may be eligible for forgiveness on a covered loan used for costs including payroll, mortgage and rent obligations, and utility payments.

If you have questions about the PPP loan program, you can contact the SBA at 1-877-475-2435. If you are having trouble getting through to, or getting your questions answered by, the SBA, please submit this form and NAHB staff will follow up and provide additional guidance as needed.

Visit NAHB’s small business loans FAQs for more information.

View NAHB’s Quick Guide to the CARES Act and Small Business Lending Programs