COVID-19 Relief Law - EIDL and PPP updates
4/14/2020
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The Small Business Administration ("SBA") has issued the following update to the guidance on the $10,000 grant in advance of loan approval:
The Advance is available as part of the full EIDL application and will be transferred into the account provided shortly after an 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
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PURPOSE
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Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable)
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To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven)
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TERMS
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Up to $10 million
1% interest rate
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Up to $2 million
3.75% for businesses
2.75% for non-profits
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FORGIVABLE
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YES
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NO – EIDL Loan
YES – EIDL Advance
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MATURITY
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2 years
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30 years
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FIRST PAYMENT DUE
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Deferred 6 months
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Deferred 1 year
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We understand how uncertain this time and are here to assist or provide counseling with any and all of your legal needs. Please do not hesitate to contact our firm with any questions, Fazzio Law is in your corner.
Category: COVID-19 Relief Law
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