Loan Comparisons
| Economic Injury Disaster (EILD)Loan Program | Paycheck Protection (PPP) Program | |
| Use of Loan | Loans are for the sole purpose to cover operating costs such as employee salaries, mortgage, insurance rent and any other debt obligations | Loans are for the sole purpose to cover operating costs such as employee salaries, mortgage, insurance rent and other debt obligations |
| Max Loan Amount | $2,000,000 per business | $10,000,000 per business |
| Eligibility | Small Business, 501(c)(3) Nonprofits and Independent Contractor under 500 employees | Small Business, 501(c)(3) Nonprofits and Independent Contractor under 500 employees |
| Term of Loan | 30 Years | 10 years |
| Interest Rates | 2.75% Nonprofits, 3.75% small business | 4% |
| Application Filed | SBA | SBA-approved Bank, Micro lenders or Community development lenders |
| Funds Disbursement | Directly from the SBA | Directly from the SBA-approved lender |
| Collateral | Not required up to $200K of loan amount | Not required |
| Fees | No fees to apply | No fees to apply |
| Penalties | No penalty to pay down loan | No penalty to pay down loan |
| Payments | Deferred for one year | Deferred for 6 months to 1 year |
Economic Injury Disaster Loan (EIDL)
- SBA will review the following for loan acceptance:
- Credit
- Repayment abilities
- SBA Case Manager may ask for additional information before final approval of the loan after acceptance of your application by the SBA
- $2M limit per business, even those that have multiple locations, it will still probably be a $2M limit
- Emergency EIDL Grants
- Part of the EIDL loan application process
- Up to $10,000
- Made available within 3 days of acceptance of loan submittal by SBA
- DOESN’T HAVE TO BE REPAID
Paycheck Protection Program –Loan Amount Calculation
- Loan Amount will be based on the following:
- Number of full-time and part-time employees
- Coverage period 2/15/20 – 6/30/20
- Based on average total monthly payroll costs incurred during the one-year period before the date of the loan
- Could receive up to 2.5 times its average monthly payroll costs subject to a $10 million limitation
- Not included in calculation:
- individual employee compensation over $100,000;
- payroll and income taxes;
- compensation for an employee with a principal place of residence outside the United States; and
- qualified sick leave or family leave wages for which a business will receive a credit under the Families First Coronavirus Response Act.
