GLI’S GUIDE TO FEDERAL LOAN PROGRAMS FOR SMALL BUSINESSES DURING COVID-19
There are currently two major federal loan programs for small businesses seeking aid during the COVID-19 crisis offered by the U.S. Small Business Administration (SBA). One is the Economic Injury Disaster Loan Program or EIDL. This program was recently expanded by the CARES Act, the major COVID-19 relief bill passed by Congress. The other is the newly-created Paycheck Protection Program, or PPP. This program was created by the CARES Act. Both EIDL and PPP were designed to help and support small business owners dealing with major crises brought on by disasters outside of their control. They are similar in many ways. Employers should evaluate them closely to determine which program will fit their needs most effectively.
QUICK FACTS ABOUT THE ECONOMIC INJURY DISASTER LOAN PROGRAM
READ GLI’S FULL GUIDE TO EIDL HERE.
- Loans of up to $2 million with a forgivable $10,000 advance
- Repayment terms up 30 years with rates at 3.75%
- Support to cover payroll, fixed debt, and other bills
- Apply directly through SBA
QUICK FACTS ABOUT THE PAYCHECK PROTECTION PROGRAM
READ GLI’S FULL GUIDE TO PPP HERE.
- Loans based on payroll but up to $10 million
- At least partially forgivable with rates at 0.5 percent and repayment options over 10 years
- Support to cover payroll, rent, mortgages, and utilities
- Apply through SBA-certified lenders – SBA is working to expand the list of certified lenders.