Provided through the National Federation of Independent Business
|Loan Program||Economic Injury Disaster Loan (EIDL)||Paycheck Protection Program Loan (PPPL)|
|Lender||Small Business Administration (SBA)||Financial institutions (commercial banks, credit unions, and other approved lenders)|
|Program Period||through December 31, 2020||through June 30, 2020|
(Covers 8-weeks of eligible expenses after loan origination.)
|Eligibility||• Have 500 or fewer employees,|
• Are a sole proprietor, independent contractor, or self-employed individual.
• Been in business since January 31, 2020.
| • Have 500 or fewer employees,|
• Are a sole proprietor, independent contractor, or self-employed individual,
• A small business that meets the SBA small business industry-specific standards,
• Operate an accommodation or food service business (NAICS Code 72) with 500 of fewer employees per location,
• A business assigned a franchise operator code by SBA,
• A business that receives assistance under the Small Business Investment Act.
• Been in business since February 15, 2020 and paid taxes on your employees or independent contractors.
|Loan Amount||• The maximum loan size is $2 million.|
• Applicants who apply for this loan may request an advance Emergency EIDL grant of up to $10,000 from the SBA.
|• 2.5x the average monthly “payroll” costs, measured over the 12 months preceding the loan origination date. Seasonal business may use the period February 15, 2019 – June 30, 2019 or March 1, 2019 – June 30, 2019 to calculate the average payroll.|
• The maximum loan size is $10 million.
• “Payroll” includes:
o Salaries, commissions, tips,
o Employee benefits (including health insurance premiums and retirement benefits),
o State and local taxes,
o Compensation to sole proprietors or independent contractors.
• “Payroll” excludes:
o Annual salary in excess of $100,000,
o Foreign employees,
o FICA and income tax withholdings.
|Eligible Expenses||• Payroll costs, including benefits,|
• Fixed debts (mortgage, rent, lease),
• Accounts payable,
• Other bills.
|• Payroll costs, including benefits,|
• Interest on mortgage obligations, incurred before February 15, 2020,
• Rent, under lease agreements in force before February 15, 2020 and
• Utilities, for which service began before February 15, 2020.
|Term Duration||Up to 30 years||Up to 2 years|
|Interest Rate||3.75% for businesses|
2.75% for nonprofits
|1% for all borrowers|
|Forgiveness||No loan forgiveness|
Emergency EIDL grant of up to $10,000 is forgiven. Grant must be used for the following expenses:
o Providing paid sick leave to employees unable to work due to the direct effect of the COVID–19,
o Maintaining payroll to retain employees during business disruptions or substantial slowdowns,
o Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains,
o Making rent or mortgage payments,o Repaying obligations that cannot be met due to revenue losses.
|Eligible expenses (below) within an 8-week period from date of loan origination:|
• Payroll costs (including everything listed above),
• Payments on mortgage interest,
Your loan forgiveness will be reduced if you decrease the number of your full-time and/or decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019. Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
|Repayment||Unclear about deferred||Payments (and interest) are deferred for 6 months|
|Personal Guarantee||Not for loan less than $200,000||NO|
|Required Documents||• SBA Form 5 (Application),|
• Credit score,
• IRS Form 4506T,
• Most recent federal income tax returns for the business,
• SBA Form 1143 (Personal Financial Statement),
• SBA Form 2202 or a similar schedule of liabilities listing all fixed debts.
|• Two page application HERE|
• Payroll expenses
|Availability||Loans available now||(Will vary by participating banks)|
April 3, 2020, small businesses and sole proprietorships,
April 10, 2020, independent contractors and self-employed individuals