Updated SBA Loan Comparison

Provided through the National Federation of Independent Business

Loan ProgramEconomic Injury Disaster Loan (EIDL)Paycheck Protection Program Loan (PPPL)
LenderSmall Business Administration (SBA)Financial institutions (commercial banks, credit unions, and other approved lenders)
Program Period through December 31, 2020through 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 DurationUp to 30 yearsUp to 2 years
Interest Rate3.75% for businesses
2.75% for nonprofits
1% for all borrowers
ForgivenessNo 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,
• Rent,
• Utilities.
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.
RepaymentUnclear about deferredPayments (and interest) are deferred for 6 months
Collateral RequirementNONO
Personal GuaranteeNot for loan less than $200,000NO
Prepayment PenaltiesNONO
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
AvailabilityLoans available now(Will vary by participating banks)
April 3, 2020, small businesses and sole proprietorships,
April 10, 2020, independent contractors and self-employed individuals

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