COVID‐19 Funding Information
Economic Injury Disaster Loan (EIDL) Emergency Advance
- Part of the CARES Act through SBA
- $10,000 paid within 3 days
- $10,000 advance is treated as a grant (complete loan forgiveness if you do not apply for Paycheck Protection Program)
- Paid directly from SBA
- Apply: https://covid19relief.sba.gov/#/
Paycheck Protection Program (PPP)
- Part of the CARES Act through SBA
- The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
- SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
- Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full‐time headcount declines, or if salaries and wages decrease.
- The Paycheck Protection Program will be available through June 30, 2020.
- Lenders may begin processing loan applications as soon as April 3, 2020
- Pays 250% of your monthly payroll
- Must get a loan from local lender
- Fact Sheets
- https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz _loan_final.pdf
- https://www.rubio.senate.gov/public/_cache/files/ac3081f6‐14ae‐4e6f‐9197‐ 172ede28badd/71AB6CB05A08E369E0D488A80B3874A5.faqs‐‐‐paycheck‐protection‐ program‐faqs‐for‐small‐businesses.pdf
- https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact %20Sheet.pdf
Current application: https://home.treasury.gov/system/files/136/Paycheck‐Protection‐Program‐ Application‐3‐30‐2020‐v3.pdf
We do know that certain documents will be required to apply, including:
- Payroll tax filings reported to the IRS
- State income, payroll, and unemployment insurance filings
- Documentation verifying average monthly payroll amounts from prior periods
- Documentation verifying payroll costs, mortgage interest, rent and utility payments you expect to incur over the 2 month period after you receive funding
Economic Injury Disaster Loan (EIDL)
- A low‐interest, fixed rate loan that can provide up to $2 million in assistance for small businesses that can be used to pay immediate expenses during an emergency
- Not currently available
- The EIDL Emergency Advance is like a doorway to the bigger EIDL
- 2.75% interest rate for nonprofits, 3.75% interest rate for businesses with 500 or fewer employees
- Loans can be based solely on credit score.
- https://www.sba.gov/funding‐programs/disaster‐assistance
- Application for when available: https://www.sba.gov/disaster/apply‐for‐disaster‐ loan/pdfs/Business%20Loan%20Application%20(SBA%20Form%205).pdf
General Info
- If you took advantage of an emergency EIDL grant award of up to $10,000, that amount would be subtracted from the amount forgiven under PPP.
- You cannot use the funds from PPP and EIDL for the same expenses.
- Great chart comparing EIDL Emergency Advance and PPP: https://www.councilofnonprofits.org/sites/default/files/documents/cares‐act‐loan‐options‐for‐ nonprofits.pdf
- Article with information regarding PPP and https://www.armaninollp.com/articles/cares‐act‐ funding‐provisions‐small‐midsized‐businesses/#.XoShjm‐WnBk.email