SUMMARY: There are two key SBA small-business relief programs : 1) Paycheck Protection Program (PPP) (up to $10m loan, which is forgivable if you meet certain milestones on maintaining your payroll); 2) Economic Injury Disaster Loan (EIDL) & Grants (you can receive a $10k cash advance within 3 days of applying for up to $2m of an Economic Injury Disaster Loan (EIDL)); according to the government, “the $10k advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.”) The PPP loan application is live: (UPDATE April 24th: The SBA will resume accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 10:30am EDT.)
The EIDL application is live. You are allowed to do BOTH programs, but there are restrictions (see below). Two other SBA Loan options that may apply to you:
|
***
In addition to this guide on the SBA’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL), our Trends research team has compiled 19 mini-case studies on how other small businesses are coping with the crisis.
*Up-to-date as of 5pm EST April 24th
Where are the primary sources?
Here is the 11-page government summary PDF and PPP website and EIDL portal (definitely consult all).
Which SBA office can help me?
Keep in contact with the SBA office nearest to you (here are Twitter accounts for each district office)
What programs are available? (TL;DR)
Can I Do Both The PPP and EIDL Programs?
Whether you’ve already received an EIDL unrelated to COVID-19 or you receive a COVID19 related EIDL and/or Emergency Grant between January 31, 2020 and June 30, 2020, you may also apply for a PPP loan.
If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance amount received under the Emergency Economic Injury Grant Program would be subtracted from the amount forgiven in the PPP. However, you cannot use your EIDL for the same purpose as your PPP loan. For example, if you use your EIDL to cover payroll for certain workers in April, you cannot use PPP for payroll for those same workers in April, although you could use it for payroll in March or for different workers in April.
What Should I Have Ready For The PPP Application?
OK, So I Can Go To The Portal For The EIDL…Can You Tell Me More About The PPP?