General Overview
What is it?
The EIDL is an emergency advance of up to $10,000 or $1,000 per employee in your business prior to January 31, 2020. You will not have to pay back the advance. This could be helpful to get through the next few months until we’re on the other side of this pandemic.
What can I spend the money on?
The criteria is broad. You can use the money for payroll, rent and mortgages, or other operational costs.
What can i not use the money on?
You can’t use the advance to refinance debt or pay dividends. The goal is to help get you through the next few months until we can return to work.
Is this the Payment Protection Program (PPP)?
No. The Paycheck Protection Program offered by the SBA allows businesses borrow up to $10 million in loans that are 100% forgivable if they do not lay off any employees or if they rehire employees they’ve already laid off. The EIDL allows businesses to borrow up to $2 million in loans and includes the advance of up to $10k.
For a detailed explanation, see the SBA.gov’s Coronavirus Relief Options. If your business qualifies for the Paycheck Protection Program (PPP) and you need help applying, please reach out. We’ll guide you through the process.
| Paycheck Protection Program | Full EIDL Loan | |
|---|---|---|
| PURPOSE | Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable) | To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven) |
| TERMS | Up to $10 million 1% interest rate | • 1% interest rate • Up to $2 million • 3.75% for businesses • 2.75% for non-profits |
| FORGIVABLE | YES | NO – EIDL Loan YES – EIDL Advance |
| MATURITY | 2 years | 30 years |
| FIRST PAYMENT DUE | Deferred 6 months | Deferred 1 year |
Need help?
Fill out the form below and we’ll be in touch with you quickly to get you started in your application for the EIDL Advance.
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