SBA Relief Program Comparison Chart
For additional information and daily updates, see:
- The Paycheck Protection Program Flexibility Act Eases PPP Forgiveness Rules
- SBA Releases Paycheck Protection Program Loan Forgiveness Application and Limited Guidance
- SBA Releases Additional Guidance Regarding Certification of “Need” for PPP Loan
- SBA Announces Retro-Active Change to Paycheck Protection Loan Program
- Paycheck Protection Program Loans for Taxpayers with Self-Employment Income
- Paycheck Protection Program and Forgivable Loans Summary
- COVID-19 and Tax Changes
| OVERVIEW | PAYCHECK PROTECTION PROGRAM (PPP) | SBA ECONOMIC INJURY DISASTER LOAN (EIDL) |
| MAXIMUM LOAN AMOUNT | 2.5x average monthly payroll costs capped at $100k per employee, maximum of $10 million per borrower | $2 million |
| THE LENDER | Banks, credit unions, and other regulated lenders. SBA may approve additional lenders. Search for a local lender | The SBA |
| WHEN CAN I APPLY? | The PPP reopened July 6, 2020 and the new deadline to apply for a loan is August 8, 2020. | Now |
| APPLICATION LINK | Paycheck Protection Program Borrower Application Form | Economic Injury Disaster Loan Application |
| ELIGIBLE BORROWERS | • Small businesses with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons) in business as of 2/15/20 • 501(c)(3) nonprofits and 501(c)(19) veterans organizations in operation as of 2/15/20 • Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. • Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers. | • A business with not more than 500 employees • An individual who operates under a sole proprietorship, with or without employees, or as an independent contractor • A cooperative with not more than 500 employees • A tribal small business concern, as described in 15 U.S.C. 657a(b)(2)(C), with not more than 500 employees • A business, including an agricultural cooperative, aquaculture enterprise, nursery, or producer cooperative, that is small under the SBA’s size standards • A business with more than 500 employees that is small under the SBA’s size standards • Eligible private nonprofit organizations |
| USE OF PROCEEDS | • Payroll • Interest on mortgage payments (principal or prepayments excluded) and other debt obligations incurred before 2/15/20 • Rent due on leases in place before 2/15/20 • Utility services in place before 2/15/20 | Financial obligations and operating expenses that could have been met had the disaster not occurred (not to be used for refinancing debt, fixed assets, or payouts) |
| COLLATERAL / PG | No collateral required. No personal guarantees required. | Personal guarantee required on loan amounts >$200K; Will take collateral |
| AFFILIATION | Applicable | Applicable |
| FORGIVABLE? | Yes, up to 100%. Forgiveness of indebtedness of an amount equal to the sum of the qualified costs incurred and payments made during the 24-week covered period (optional 8-week period available if loan funded prior to June 5, 2020). Forgiven portion may be reduced by a reduction in retained employees or reduction in pay of retained employees. At least 60% of the forgiven amount must have been used for payroll and health care benefits, with the remainder used for rent, interest, and/or utilities. | No |
| OBTAIN FORGIVENESS | The requirements for debt forgiveness and the process to request forgiveness were unclear until May 15, 2020, when the Treasury Department released its 11 page PPP Loan Forgiveness Application and Related Guidance. Borrowers must submit their Forgiveness Applications within 10 months after the conclusion of their “Covered Period.” Lenders have 60 days to review the applications and SBA has 90 days to notify the lender of their forgiveness determination. | N/A |
| INTEREST | 1% | 3.75% for businesses, 2.75% for nonprofits |
| TERM | New loans (on or after June 5, 2020), have a maturity of 5 years. Loans issued prior to June 5, 2020, can be extended from the original maturity of 2 years to 5 years if the lender and borrower agree, however, the interest rate may change. | Up to 30 years |
| WHEN IS THE FIRST LOAN PAYMENT DUE? | First payment deferred for 6 months, during which interest will accrue. No prepayment penalty. | One year after the loan origination date (interest is accrued during the deferment) |
| LOAN ADVANCE | N/A | • New feature as of 3/30/20 - the opportunity for a $10,000 advance on the EIDL loan which will not have to be repaid. • The EIDL Advance may be available even if your EIDL application was declined or is still pending. • If you applied for EIDL before 3/30, you need to apply again asking for the Advance |
Additional Small Business Guidance & Loan Resources: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
As of 6/16/20
