A Comparison of SMALL BUSINESS DISASTER LOANS through the CARES Act A Comparison of Small Business Disaster
Loans Through the CARES Act
Paycheck Protection Program
(PPP)
LOANS
Economic Injury Disaster Loan
(EIDL)
Short-term, potentially forgivable loans
to eligible small businesses that retain employees,
maintain payroll, and use for other allowable
operating expenses.
PPP loans are administered and approved through
SBA-certified lending institutions.
ABOUT Long-term, low-interest working capital disaster
loans for small businesses that suffered substantial
economic injury due to COVID-19.
EIDLs are administered and approved directly
by the SBA.
Amount: Lesser of 2.5x average monthly
payroll costs, or $10 million
Interest and Terms: 1% for a term of two
years for any amount not forgiven
Collateral: None
Personal Guarantee: None
FINANCING Amount: Up to $2 million
Interest and Terms: 3.75% for a term
up to 30 years
Collateral: Loans of more than $25,000
Personal Guarantee: Loans of more than
$200,000
Private small businesses that have less than the
greater of—
• 500 or fewer employees whose principal
place of residence is in the United States,
or
• SBA employee or revenue-based size
standards for the industry that the
business operates.
Accommodation and Food Service (NAICS 72)
businesses based on per location.
ELIGIBILITY
Private small businesses that meet SBA
employee or revenue-based size standards
for the industry that the business operates.
Eligible—Limited to the amount spent on payroll
costs and allowable operating expenses during
the eight-week period beginning on the date
of the origination of the loan.
At a minimum, 75% must be expended
on payroll costs to be forgiven.
FORGIVENESS The EIDL loan is not forgivable, however you may
apply for an EIDL loan advance, which you do not
have to pay back. Applicants may request at the
time of application a loan advance of up to $10,000
($1,000 per employee). Approved borrowers will
have the advance deducted from the total principal
and forgiven for applicants not approved for an EIDL.
Proceeds may be used to pay payroll costs,
mortgage interest, rent, utilities, and interest
on pre-existing loans.
USE
Proceeds may be used to pay fixed debts, payroll,
accounts payable, rent, utilities, and other bills
that cannot be paid because of the disaster’s impact.
June 30th, 2020
DEADLINE
December 31st, 2020
Contact your local bank, credit union,
or other SBA-certified lender to apply
or for more information.
APPLY NOW
Apply online directly with the U.S.
SBA at https://covid19relief.sba.gov
i
/covid19relief.sba.gov
/covid19relief.sba.gov
