PAYCHECK PROTECTION PROGRAM ('PPP") and ECONOMIC INJURY DISASTER LOAN (“EIDL”) Information chart

 
 
 

PAYCHECK PROTECTION PROGRAM LOAN (“PPP”)

 

ECONOMIC INJURY DISASTER LOAN (“EIDL”)

 
 

Who can Qualify?

 

Small businesses that were operational as of February 15, 2020, with less than 500 employees, including:

  • a small business, regardless of revenue

  • a small business that otherwise meets the SBA’s size requirements

  • sole proprietors, independent contractors, and self‑employed individuals who regularly carry on any trade or business, including those in the “gig economy”

  • a hospitality or food service business (those with an NAICS code beginning with 72) if it has fewer than 500 employees per physical location 

  • Non-profits organizations

  • A tribal business entities 

 

Small business, sole proprietorship, self-employed individuals, non-for profit, with less than 500 employees, and located in a disaster area as declared by the president

 
 

Who is Ineligible to Apply?

 

  • engaged in any activity that is illegal under federal, state, or local law

  • a household employer (individuals who employ household employees such as nannies or housekeepers)

  • if a 20% or more owner of the equity of the applicant is incarcerated, on probation, on parole; subject to an indictment, or other formal criminal charges in any jurisdiction; or has been convicted of a felony within the last five years

  • the applicant is delinquent or has defaulted in the past seven year for any loan from the SBA or any other Federal agency

 
 
 

Where to Apply?

 

You can apply with most banking institutions, and also with most federally insured depository institution, federally insured credit union, and Farm Credit System institutions.

 

Apply online here

 
 

Maximum amount

 

Lesser of:

(i)    $10 million, or
(ii)   2.5 times “payroll costs” plus any outstanding EIDL amount owed received by between January 31, 2020 and the approval of the PPP

 

Up to $2M

 
 

How to Calculate the Maximum Amount

 

Up to 2 months of the borrower’s average monthly payroll costs from the last year plus an additional 25% of that amount, up to a $10 million cap.

 
 
 

Maximum Interest Rate and Maturity

 

1% with a maturity up to 2 years

 

3.75% with a maturity up to 30 years

 
 

When is the first payment due?

 

From 6 months to a year

 

December 2020

 
 

Is the loan Forgivable?

 

Yes, provided that:

  • full-time employees and compensation levels are maintained for 8 weeks, and

  • proceeds are used to cover payroll payments, and most mortgage interest, rent, and utilities payments that are incurred during the 8-week period after the PPP origination date

 

Yes, when used for payroll payments

 
 

Is collateral required

 

No

 

Yes ,if amount exceeds $25,000

 
 

Permitted Uses

 

  • Payroll and benefit payments 

  • Rent and utilities payment if lease was entered before February 15, 2020

  • Mortgage payments for obligations uncured before February 15, 2020

 

 

Most business expenses, including payroll, rent, mortgage interest, utilities, accounts payable, etc.

 
 

Deadline to Apply

 

June 30, 2020

 
Maria Moller