(This article was updated April 28, 2020 to reflect additional funding for PPP and EIDL.) There are two main loan programs to help small business owners through the COVID-19 crisis:
- Economic Injury Disaster Loans (EIDLs)
- SBA Cares Act Paycheck Protection Program Loans (PPPs)
On April 23, 2020 Congress authorized an additional $310 billion in funding for PPP loans and $60 billion for EIDL.
These loan programs have some significant differences, and many small business owners are confused. In the first part of this article we spell out the basic program requirements, and in the second, we answer some frequently asked questions about Economic Injury Disaster Loans (EIDL) versus Paycheck Protection Program (PPP) Loans.
Please keep in mind this information is changing rapidly and is based on our current understanding of the programs. It can and likely will change. Although we will be monitoring and updating this as new information becomes available, please do not rely solely on this for your financial decisions. We encourage you to consult with your lawyers, CPAs and Financial Advisors.
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by Gerri DetweilerApril 28, 2020, BUSINESS FINANCING