| Emergency Injury Disaster Loan | Paycheck Protection Program Loans | |
|---|---|---|
| Maximum Loan Amount | $2 million | $10 million |
| Grant/Forgiveness | Emergency grant of up to $10,000, available within three days of EIDL application. Can be used for: • Providing paid sick leave • Maintaining payroll • Meeting increased materials costs • Paying rent and mortgage • Repaying obligations | Borrower can request forgiveness of the principal portion of the loan for money used to cover payroll, mortgage interest, rent, and utilities |
| Interest Rate | 3.75% for businesses 2.75% for nonprofits | 1.00% on balance that remains after forgiveness |
| Repayment Period | Up to 30 years | 2 years for balance that remains after forgiveness |
| Eligibility | Must be directly affected by COVID-19 and fall under one of the following categories: • Businesses with < 500 employees • Cooperatives, ESOPs, and tribal small businesses (< 500 employees) • Sole proprietors, independent contractors | • Businesses and IRC Section 501(c)(3) nonprofits with < 500 employees • Sole proprietors, independent contractors, and eligible self-employed individuals • IRC Section 501(c)(19) veterans’ organizations and tribal concerns that meet the SBA size standards • Businesses with NAICS codes beginning in (72) may be eligible on a per location basis |
| Must Have Been in Business On | January 31, 2020 | February 15, 2020 |
| Where to Apply | SBA COVID-19 Disaster Assistance Portal | Local bank (but availability varies). Use Nav to fill out application and be matched to lender. https://www.nav.com/paycheck-protection-program-form/ |
| Personal Guarantee | For loans > $200,000 | None |
| Collateral Requirement | For loans > $25,000 | None |
| Payment Deferments | One year | At least six months |
| Allowable Uses of Funds | Items listed above under Grant/Forgiveness and: • Pay fixed debts, payroll, accounts payable, and other bills • NOT intended to replace lost sales/profits • Cannot be used to pay down long-term debt | • Payroll • Costs related to group health care benefit continuation • Salaries, commissions, and other compensations • Interest on mortgage obligation (but no principal or prepayment) • Rent • Utilities • Interest on pre-existing debt • Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020 |
| Credit Requirement | Personal credit check for all 20% or more owners | None |
| Funding Timeframe | Grant of up to $10,00 within three days. Next disbursement of $25,000 within a few weeks (projected). | Varies |
Outsourced Accounting vs. In-House Team: Which is Right for Your Business?
Making a decision between an in-house accounting team or outsourced accounting services? Understand how each can impact your business, from cost efficiency and scalable services to control over operations and data security. Read this article for a comprehensive analysis, helping you choose the right option that aligns with your business size, budget, and long-term financial goals.”
