• SBA EIDL & PPP Loans

  • The table below is a comparison of the two loan programs currently available from the Federal Government. Click here to download table in English / Chinese Simplified / Chinese Traditional / Korean / Vietnamese You can also get information directly from SBA in different Asian languages by calling 800.659.2955 If you received a PPP loan, you need to apply to the SBA for the loan to be forgiven. Click here to download PPP Forgiveness Application form.

    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