State Refunding Programs (PPP, EIDL & More)
4/23/2020
On Tuesday, the US Senate passed a $408B spending bill that expands COVID-19 business relief programs. Although a final passage is expected today, I wanted to make sure everyone is aware so you can start gathering your information. More details will be announced today or tomorrow. Keep checking the SBA website.
PAYCHECK PROTECTION PROGRAM (PPP) & ECONOMIC INJURY DISASTER LOAN (EIDL): Additional funding of $310B is planned to be added to the Paycheck Protection Program and $60B is planned to be added to the Economic Injury Disaster Loan, including $10B in grants.
The PPP provides forgivable loans to small businesses with less than 500 employees. Seventy-five percent of the loan must be used for payroll expenses, with remaining used on rent, mortgage interest, or utilities. Apply for this program through SBA approved banks, credit unions and online financial lenders or Fintechs. Authorized Fintech lenders include:
- QuickBooks Capital
- Square Capital
- Kabbage
- PayPal
- Bluevine
- Funding Circle
- OnDeck
The EIDL provides low-interest loans and grants up to $10,000 to small businesses and non-profits to cover payroll, sick leave, production costs or business obligations, such as rent or mortgage payments. Apply for this program directly through SBA.EIDL Web Page
Demand for both are high and it is recommended you gather the information necessary so that you can apply quickly when the application process resumes. You can review the information on the Phase I Application and the Phase I Information Sheet so you can understand what's needed. Check the SBA website for for the Phase II application--details are expected some time end of day today or Friday.
