On March 29th following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.
You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs.
Paycheck Protection Program
Full EIDL Loan
|PURPOSE||Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses that could have been met had the disaster not occurred.||To meet financial obligations and operating expenses.|
|TERMS||Up to $10 million
1% interest rate
|Up to $2 million
3.75% for businesses
|FORGIVABLE||YES||NO- EIDL Loan
YES- EIDL Advance
|MATURITY||2 years||30 years|
|FIRST PAYMENT DUE||Deferred 6 months||Deferred 1 year|