Loan Program
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Economic Injury Disaster Loan
(EIDL)
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Paycheck Protection Program
(PPP) Loan
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Who Makes the Loan
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Small Business Administration (SBA)
https://covid19relief.sba.gov
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Banks, Credit Unions, other financial institutions
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Program Period
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Now, through December 31, 2020
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Now, through June 30, 2020 or until funds run out
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Who Can Apply
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- 500 or fewer employees
- Sole proprietor, independent contractor, self-employed AND
- In business since January 1, 2020
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- 500 or fewer employees
- Sole proprietor, independent contractor, self-employed
- Most small businesses, franchise
- In business since February 15, 2020
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Loan Maximum
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$2 million
Applicants can request advance EIDL grant of up to $10,000 (no need to repay this)
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2.5x average monthly payroll (salaries, benefits etc) over previous 12 months, up to $10 million
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Loan Can Be Used For
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- Payroll, including benefits
- Fixed debt (mortgage, rent)
- Accounts payable
- Other bills
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- Payroll, including benefits
- Interest on mortgage before Feb 15
- Rent on leases before Feb 15
- Utilities begun before Feb 15
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Loan Term
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Up to 30 years
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Up to 2 years
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Interest
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3.75% for businesses/2.75% for nonprofits
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1% for all borrowers
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Forgiveness
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None
Advance up to $10K is forgiven
Loan must be used for:
- Providing sick leave for staff
- Maintain payroll
- Meet increased costs
- Rent/mortgage
- Other obligations
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Eligible expenses within 8 weeks of loan
- Payroll costs
- Mortgage interest
- Rent & utilities
Forgiveness will be reduced if decrease staff or salaries by more than 25%
Have until June 30 to rehire full time staff
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Repayment
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Per SBA terms
Deferment is unclear at this time
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Payments and interest are deferred for 6 months
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Other
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No collateral
No personal guarantee if loan <$200,000
No prepayment penalties
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No collateral
No personal guarantee
No prepayment penalties
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Required Documents
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- SBA Form 5 Application
- Credit score
- IRS Form 4506T
- Recent federal business income taxes
- SBA Form 1143 Personal Financials
- SBA Form 2202 Schedule of Liabilities
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- Two page application (get from your bank)
- Payroll expenses
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