Economic Injury Disaster Loan & Paycheck Protection Program The United States Small Business Administration’s Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) are intended to help small businesses stay afloat and survive the economic disaster caused by COVID-19. They are available for businesses with 500 or fewer employees (with exceptions for more employees). These deferred payment loans require minimal to no collateral, may be forgiven, and have low fixed interest rates.
Economic Injury Disaster Loan (EIDL) Purpose is to provide economic relief to businesses experiencing a temporary loss of revenue due to COVID-19. Who can Apply? Businesses in the united States and teritories, including internationally owned business located therein, operating since 01/31/2020 including:
What would cause ineligibility?
What can the loan be used for? Payroll and related benefits, Accounts payable, and Fixed Debts. Payroll costs include: - Salaries, wages, commissions, tips, etc. - Vacation, parental, family, medical, or sick leave - Allowance for separation or termination - Payment for employee benefits consisting of group health coverage including insurance premiums, and retirement - And other items For a sole proprietor or independent contractor, this includes: - Commissions - Income
When you should apply? 01/31/2020-12/31/2020 Where can you apply? Directly with the US SBA https://covid19relief.sba.gov/ The maximum loan amount is 2,000,000 with an interest rate of 2.75-3.75%.
Paycheck Protection Program (PPP) Purpose is to incentivize small businesses to retain their workforce during the COVID-19 crisis. Who can apply? Small businesses in the United States and territories, including internationally owned businesses located therein, with 500 or fewer employees operating on 02/15/2020 including: - Sole proprietors - Independent contractors - Eligible self-employed persons - Partnerships - S-corps - C-corps - 501(c)(3) Nonprofit organizations - 501(c)(19) Veterans’ organizations - 31(b)(2)(C) Tribal business Businesses with more than 500 employees but defined as small according to US SBA size standards based on industry. What would cause ineligibility? - You are engaged in any activity that is illegal under federal, state, or local law - You are a household employer (individuals who employ household employees such as nannies or housekeepers) - An owner of 20 percent or more of the equity of the applicant is incarcerated, on probation, on parole; presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of a felony within the last five years You, or any business owned or controlled by you or any of your owners, has ever obtained a direct or guaranteed loan from SBA or any other Federal agency that is currently delinquent or has defaulted within the last seven years and caused a loss to the government What can the loan be used for? - Payroll costs for your employees, whether they can work or not, including paid sick or family medical leave compensation - Payment for group health care benefits, including insurance premiums - Mortgage interest - Rent - Utilities - Interest payments on other debt incurred before 02/15/2020 Refinancing an SBA EIDL loan made between 01/31-04/03/2020 Payroll costs include: - Salaries, wages, commissions, tips, etc. - Vacation, parental, family, medical, or sick leave - Allowance for separation or termination - Payment for employee benefits consisting of group health coverage, including insurance premiums, and retirement - And other items For a sole proprietor or independent contractor, this includes: - Commissions - Income Net earnings from self-employment or similar compensation When you should apply? 04/03/2020-06/30/2020 (or until funds are exhausted) Where can you apply? US SBA approved lender: start with a bank you have a current relationship with Each lender has their own application process. Due to high volume, many are only accepting applications from those with current relationships The maximum loan amount is 10,000,000 with an interest rate of 1.0%. No loan fees.
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