Loan Type | Economic Injury Disaster Loans (EIDL) | Paycheck Protection Program-Passed through Care Act |
Offered Through |
SBA | SBA Approved Bank |
Also offered through |
n/a | Fintechs who can get approval in less than 48 hours |
Loan Forgiveness |
Not at this time, could change | Forgivnesss or Partial Forgiveness |
Loan based on |
Loss to date, expected future loss | Average Payroll over 12 month period |
Loan Caps | 2 Million | 10 Million Cap |
Personal Guarantee |
The SBA will place a UCC lien against the assets of the business | No collateral from business or it’s owners |
First Payment Due |
One year after the loan origination date (interest is accrued during the deferment) | At least six months after the loan origination date (interest is accrued during the deferment) |
Underwriting Time frame |
2-3 weeks plus an additional 5 days for funding | Unkown at this time, program is being set up as of 3/29/2020 |
Advances | 10,000 immediate advance, available within three days | None |
Who can apply |
Small Businesses, As a general guide, less than 500 employees and $35 million in revenue would typically qualify. | Small businesess, including 501(c)(3) nonprofits, sole-proprietors, independent contractors, and other self-employed individuals |
Allowable uses for loan |
Financial obligations and operating expenses that could have been met had the disaster not occurred | Payroll (employee salaries, paid sick or medical leave), insurance premiums, and mortgage/rent, and utility payments. |
Loan Maturity max |
Up to 30 years | 10 Years |
Interest Max (if not forgiven) |
3.75% for businesses, 2.75% for non-profits | 4% |
Pre- payment Fees |
None | None |
Priorites Businesses: |
n/a | In Rural Markets, Veterans of Military, Women Owners. |
Can I apply now? |
Yes, the application process is live, and loans are available now. There is no obligation to accept the loan if you qualify. The SBA typically allows 60 days to accept the loan offer, but you can always extend this if needed. Therefore, it is better to apply ASAP | No. Now that the CARE Act is law, the SBA will give their loan guidelines to the banks. The banks will then prepare their loan application process. We expect this to take at least two weeks |