The National Federation of Independent Businesses has provided an easy to read outline of loan assistance available to small businesses affected by the coronavirus government shutdown of businesses. If you are a small business owner I recommend you visit the NFIB website, www.NFIB.com, for more information.
Coronavirus Small Business Loan Comparison
|Loan Program||Economic Injury Disaster Loan (EIDL)||Paycheck Protection Program Loan (PPPL)|
|Program Period||January 31, 2020 – December 31, 2020||February 15, 2020 – June 30, 2020
(Loan covers 8-weeks of eligible expenses within above time frame.)
|Eligibility||• Have 500 or fewer employees,
• Are a sole proprietor, independent
contractor, or self-employed individual. AND
• Been in business since January 31, 2020.
|• Have 500 or fewer employees,
• Are a sole proprietor, independent contractor, or self-
• A small business that meets the SBA small business
• Operate an accommodation or food service business
(NAICS Code 72) with 500 of fewer employees per
• A business assigned a franchise operator code by SBA,
• A business that receives assistance under the Small
Business Investment Act. AND
• Been in business since February 15, 2020 and paid taxes on your employees or independent contractors.
|Loan Amount||• The maximum loan size is $2 million.
• Applicants who apply for this loan may request an advance Emergency EIDL grant of up to $10,000 from the SBA.
|• 2.5x the average monthly “payroll” costs, measured over the 12 months preceding the loan origination date. Seasonal business may use the period February 15, 2019 – June 30, 2019 or March 1, 2019 – June 30, 2019 to calculate the average payroll.
• The maximum loan size is $10 million.
• “Payroll” includes:
o Salaries,commissions,tips,o Employeebenefits(includinghealthinsurance premiums and retirement benefits),
• “Payroll” excludes:
o Annualsalaryinexcessof$100,000, o Foreignemployees,
|Eligible Expenses||• Payroll,
• Fixed debts (mortgage, rent, lease),
• Accounts payable,
• Other bills.
|• Payroll costs, including benefits,
• Interest on mortgage obligations, incurred before
February 15, 2020,
• Rent, under lease agreements in force before February
15, 2020 and
• Utilities, for which service began before February 15,
|Term Duration||Up to 30 years||Up to 2 years|
|Interest Rate||3.75% for businesses, 2.75% for nonprofits||0.50%|
|Forgiveness||No loan forgiveness
Emergency EIDL grant of up to $10,000 is forgiven. Grant must be used for the following expenses:
unable to work due to the direct effect
of the COVID–19,
during business disruptions or
materials unavailable from the applicant’s original source due to interrupted supply chains,
o Making rent or mortgage payments,o Repaying obligations that cannot be met due to revenue losses.
|Eligible expenses (below) within an 8-week period from February 15, 2020 – June 30, 2020:
• Payroll costs (including everything listed above),
• Payments on mortgage interest,
***Your loan forgiveness will be reduced if you decrease the number of your full-time and/or decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.***
|Repayment||Further guidance needed||Payments (and interest) are deferred for 6 months|
|Personal Guarantee||Not for loan less than $200,000||No|
|Required Documents||• SBA Form 5 (Application),
• Credit score,
• IRS Form 4506T,
• Most recent federal income tax returns
for the business,
• SBA Form 1143 (Personal Financial
• SBA Form 2202 or a similar schedule of
liabilities listing all fixed debts.
|• Two page application HERE|
|Availability||Loans available now||April 3, 2020, small businesses and sole proprietorships, April 10, 2020, independent contractors and self- employed individuals|