Paycheck Protection Program

More money which can be forgiven:

Maximum loan amount = 2.5x your average monthly payroll costs from the last year (plus any EIDL loan between January 31, 2020 and April 3, 2020), capped at $10 million.

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The loan amounts will be forgiven as long as:

• he loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made;

• employee and compensation levels are maintained (or quickly rehire);and

• reduced by amount of EIDL grant received

More restrictive uses of funds:

75% must be used for payroll costs; the rest can be used for:

• payment of interest on any mortgage obligation incurred before February 15, 2020

• rent payments under leasing agreements entered into before February 15, 2020

• utility payments (electricity, gas, water, transportation, telephone, or internet services which started before February 15, 2020)

Terms:

Not secured

No personal guarantee

Interest Rate:

• 1.00% fixed rate

Repayment:

• Deferred for 6 months

• Repayment period of 2 years

Application

Opened April 3, 2020, apply through local lenders

Fewer additional benefits:

No Payroll Tax Deferral (if loan forgiven)

No Employee Retention Tax Credit

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A PPP Loan does not preclude an EIDL Grant/Loan

Economic Injury Disaster Loan

Grant up to $10,000 plus low interest loan:

Up to $10,000 for EIDL advance/emergency grant which will not have to be repaid, even if not accepted for an EIDL loan

Less restrictive uses of funds:

• paid sick leave

• maintaining payroll to retain employees during business disruptions or substantial slowdowns

• meeting increased costs to obtain material unavailable from original source due to interrupted supply chains

• make rent or mortgage payments;and

• repaying obligations that cannot be met due to revenue losses

Terms:

Not secured, up to $25,000

No personal guarantee, up to $200,000

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Interest Rate:

• 3.75% for small businesses.

Repayment:

• Deferred for a year

• Repayment period of up to 30years

Application

Available now through U.S. SBA

Access to additional benefits:

Employee Retention Tax Credit

Employee Payroll Tax Deferral

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An EIDL Grant/Loan does not preclude a PPP Loan