Step-by-step guide to SBA loans for service businesses - Housecall Pro

Step-by-step guide to SBA loans for service businesses

video cover graphic for the video about SBA PPP and other pandemic initiatives for small businesses

Service companies are the backbone of the economy and Housecall Pro is committed to doing everything we can to help during the Coronavirus pandemic. 

April 2, 2020 update quick update

Globally, Coronavirus cases now top over 1million according to Johns Hopkins university. We’ve mourned over 50,000 deaths worldwide and have also celebrated over 210,000 recovered patients.

The United States still has the most cases of any country. According to the Johns Hopkins CSSE dashboard there were 242,182 cases reported and 5650 deaths and as of 3:56pm Pacific time on April 2. Here in the US we have seen almost 9 thousand people recover from coronavirus (8,889 recovered).

On April 2, President Trump said that we are in a “critical phase in our war against the coronavirus” and that the efforts we make over the next four weeks will save American lives.



US government officials, including representatives from the Department of Homeland Security, have confirmed that the Strategic National Stockpile (SNS) is running low on supplies and equipment. The stockpile maintains inventory of things like pharmaceuticals, personal protective equipment (PPE), and ventilators—for rapid deployment during emergencies; Officials say however, that the stockpile “was never…designed to fight a 50-state pandemic.” 


In light of this, there’s growing debate over US mask policies. The US CDC is considering recommendations for the general public to wear masks or face coverings using do-it-yourself type cloth coverings, as a way to help “flatten the curve.”. They are believed however, to make it clear that the general public should not use medical masks — including surgical and N95 masks — these items are in desperately short supply and needed by health-care workers.

Overall, UNEMPLOYMENT is still the big story

The US Department of Labor published data today showing that new Unemployment claims in the US were 6.6 million last week, bringing the 2-week total to 10 million new claims.

According to NPR, California alone had 878 thousand claims, Pennsylvania had 405 thousand new claims and Michigan saw 311 thousand new applications in just one week. 

Paycheck Protection Program

In this video we will walk you through step-by-step instructions for your small business to get its SBA, PPP, and/or EIDLE loan applications complete.

Applications Open April 3

Starting April 3, 2020, small businesses and sole proprietorships can apply. Starting April 10, 2020, independent contractors and self-employed individuals can apply. We encourage you to apply as quickly as you can because there is a funding cap. 

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. All loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found at


Topic: SBA Disaster Loan Process Walkthrough

Watch the video to learn step by step on how to apply for a small business loan through the Office of Disaster Assistance.

Pro Tip: The Coronavirus Disaster started Jan 31, use this in your application and go 12 months back from that date.

Paycheck Protection Program Q&A

  • What if I already laid people off?
    • If you rehire an employee, you’ll be able to count their wages for the period during which they are on your payroll.
    • There’s an exclusion for employees earning more than $100,000. Does this mean that their salary is excluded entirely, or simply capped at $100,000?
    • It means that for the purpose of calculating your loan, their salary is capped at $100,000. if you have an employee earning a salary of $150,000, for example, the size of your maximum loan will be calculated using a salary of $100,000 for that employee.
  • What about 1099 Workers?
    • Business owners should not include 1099 payments when calculating their average monthly payroll for the purposes of getting a loan. The thinking here is that 1099 workers can apply for PPP loans on their own, so business owners shouldn’t be counting those payments as payroll.
  • Can I still apply for the PPP and the EIDL?
    • Yes, you can get both loans, but the key is to use the money to cover different expenses. Section 1102(a)(2)(G), the section outlining the PPP loans, explains the borrower requirements. It says the borrower has to certify that “the eligible recipient has not received amounts under this subsection for the same purpose and duplicative amounts.”
  • What is the covered period of the loan?
    • The covered period during which expenses can be forgiven extends from February 15, 2020 to June 30, 2020. Borrowers can choose which 8 weeks they want to count towards the covered period, which can start as early as February 15, 2020.
  • How can I use the money such that the loan will be forgiven?
    • PPP can be used for
      • Payroll costs
      • Group health care benefits during periods of paid, sick, medical, or family leave, and insurance premiums. 
      • Interest on a mortgage obligation 
      • Rent, under lease agreements in force before February 15, 2020 
      • Utilities, for which service began before February 15, 2020 
      • Interest on any debt incurred before February 15, 2020 
    • So, if you’re getting an EIDL to cover payroll expenses, you can’t get a PPP to cover payroll for the length of the forgiveness period (eight weeks from when the loan is due). You would have to use the EIDL for different operating expenses or payroll for a different period. This will also go for other state or local assistance.
    • That being said, you don’t have to have both. If you’ve already gotten an EIDL for payroll purposes but just want the PPP loan, you can refinance the loan into a PPP. Any amount that was given to you as a grant under the EIDL will reduce the amount forgiven under PPP
  • What is this eight-week formula everyone keeps talking about?
    • This is the formula to figure out if your loan forgiveness under PPP will be reduced. I like the US. Chamber of Commerce illustration for figuring this out. You take your payroll costs and multiply them by a fraction. The top half of the fraction has the average number of full-time equivalent employees (FTE) per month for the eight weeks beginning on loan origination. The bottom half has either the average number of FTEs per month from February 15, 2019 to June 30, 2019 OR the average number of FTEs per month from January 1, 2020 to February 29, 2020. Seasonal employers use February 15, 2019 to June 30, 2019. 
  • Is it REALLY all forgiven, if used appropriately?
    • Yep. If you use the PPP loan for one of the stated purposes for the eight weeks following the inception of the loan, it is forgiven. In the added guidance given by the SBA yesterday, they mention that “it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.” For the PPP, you’ll need to apply for forgiveness with your lender that is servicing your loan.
  • What underwriting is required?
    • For Lenders, you will need to verify that a borrower was in operation on February 15, 2020. You will need to verify that a borrower had employees for whom the borrower paid salaries and payroll taxes. You will need to verify the dollar amount of average monthly payroll costs. You will need to follow applicable Bank Secrecy Act requirements.

Helpful business resources:

Find an SBA Lender The website is broken so ask in the Facebook Group for recommendations

Keep Your Industry an Essential Service We’re making it easy to write to your government representatives and send them a letter urging them to classify your industry as an essential service during this time of uncertainty.

Legal disclaimer

Housecall Pro is offering the Coronavirus Evening Update for Home Service Businesses for informational purposes only and to foster thoughtful communication and discussion regarding the COVID-19 pandemic; Housecall Pro is not offering advisory services or otherwise advising or representing any members of the group invited to participate.  Housecall Pro is not offering legal, medical or other professional advice in the Coronavirus Evening Update and makes no representations or warranties regarding the content of the Coronavirus Evening Update. Participants should obtain independent advice relating to their businesses and their particular circumstances.

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