Loan  Program

Economic Injury Disaster Loan
(EIDL)

Paycheck Protection Program
(PPP) Loan

Who Makes the Loan

Small Business Administration (SBA)
https://covid19relief.sba.gov

Banks, Credit Unions, other financial institutions

Program Period

Now, through December 31, 2020

Now, through  June 30, 2020 or until funds run out

Who Can Apply

• 500 or fewer employees
• Sole proprietor, independent contractor, self-employed AND
• In business since January 1, 2020

• 500 or fewer employees
• Sole proprietor, independent contractor, self-employed
• Most small businesses, franchise
• In business since February 15, 2020

Loan Maximum

$2 million
Applicants can request advance EIDL grant of up to $10,000 (no need to repay this)

2.5x average monthly payroll (salaries, benefits etc) over previous 12 months, up to $10 million

Loan Can Be Used For

• Payroll, including benefits
• Fixed debt (mortgage, rent)
• Accounts payable
• Other bills

• Payroll, including benefits
• Interest on mortgage before Feb 15
• Rent on leases before Feb 15
• Utilities begun before Feb 15

Loan Term

Up to 30 years

Up to 2 years

Interest

3.75% for businesses/2.75% for nonprofits

1% for all borrowers

Forgiveness

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

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

Repayment

Per SBA terms
Deferment is unclear at this time

Payments and interest are deferred for 6 months

Other

No collateral
No personal guarantee if loan <$200,000
No prepayment penalties

No collateral
No personal guarantee
No prepayment penalties

Required Documents

• 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

• Two page application (get from your bank)
• Payroll expenses