How to do I qualify for the $10MM SBA loan and have it Forgiven?

March 30, 2020 | Authored by Dopkins & Company, LLP

March 30, 2020 – Many clients and prospects are asking us that very question as a result of yesterday’s implementation of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.   Your best source of current information will be to consult the latest information at Dopkins SBA Loan Specialists and seek out a member of the Dopkins SBA Loan Specialists team.   It is important to note that the SBA is in the process of writing the standard operating procedures and guidelines that SBA and lenders will follow to implement these new loan programs.   Banks anticipate having those guidelines by Monday or Tuesday in order to address the specific requirements for applicants.   While we seek further clarity and to assist you when speaking with clients, the following highlights key elements of the Small Business Administration (SBA) COVID-19 Loans:


The U.S. Small Business Administration (SBA) is offering two loan programs as a result of COVID-19 to small businesses throughout New York State:

SBA Paycheck Protection Program

The Paycheck Protection Program (PPP) is part of the Federal CARES Act, the $2 trillion federal stimulus package passed on March 27, 2020. The PPP provides loans of up to $10 million to support small businesses and other eligible entities to pay workers, interest on mortgage obligations, rent, insurance, paid sick or medical leave, utilities, and payroll related costs incurred from Feb. 15, 2020 – June 30, 2020.   Available on the NYS Empire State Development webpage there are FAQ’s on the PPP, click here PPP FAQs

SBA Economic Injury Disaster Loan Program

The SBA’s Economic Injury Disaster Loan (EIDL) Program provides small businesses and non-profits with low-interest loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing due COVID-19.  Available on the NYS Empire State Development webpage there are FAQ’s on the EIDL, click hereEIDL FAQs

Small Business Debt Relief Program (SBDRP)

The SBA will provide immediate relief to small businesses with existing 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 the EIDL or PPP loans within the next six months.

Eligible Organizations

SBA Paycheck Protection Program –  eligible organizations are:

• Small businesses with 500 employees or less; The SBA size standards show by NAICS code for each type of business: ; or

• 501(c)(3) nonprofit; or

• 501(c)(19) veteran’s organization; or

• Tribal business concern described in section 31(b)(2)(C) of the Small Business Act with not more than 500 employees; or 1

• Sole-proprietors, independent contractors, and other self-employed individuals; or

• Businesses with more than one physical location that employs no more than 500 employees per physical location in certain industries to be eligible and is below a gross annual receipts threshold in certain industries; or

• Businesses in the hospitality and restaurant industries, franchises that are approved on the SBA’s Franchise Directory; or

• Small business that receives financing through the Small Business Investment Company (SBIC) program.

SBA Economic Injury Disaster Loan Program – eligible organizations are:

• Small businesses;

• small agricultural cooperatives,

• small aquaculture businesses;

most private non-profit organizations **

• Tribal businesses;

• Cooperative;

• ESOPs with fewer than 500 employees;

• Any individual operating as a sole proprietor; and

• An independent contractor during January 31, 2020 to December 31, 2020.

** – Based upon the charitable structure of the COVID-19 Response Funds, grants are limited to 501c3 nonprofit organizations, groups fiscally sponsored by a 501c3 nonprofit organization, or other charitable organizations able to receive a tax-deductible contribution, such as schools, faith-based organizations, and other public entities. These SBA loans are not able to fund labor unions, or other 501c4, 501c5, and 501c6 organizations.  Organizations are lobbying to have this changed.

About the Author

Dopkins & Company, LLP

Dopkins & Company, LLP, a locally owned certified public accounting and consulting firm offers comprehensive accounting, auditing and tax services, forensic accounting, as well as IT, wealth management consulting, internal audit support, and collateral examinations to privately held and public companies, not-for-profit organizations, and individuals. For more information, contact

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