SBA Loan Comparison

	A	B	C
1		Economic Injury Disaster Loan	Payroll Protection Program
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3	Lender	Apply with the SBA directly online (link above)	Apply through a Bank that does SBA 7(a)
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5	Maximum Loan	$2 Million with $10k Advance	2.5x average Monthly Payroll which could include wages, payroll taxes, benefits AND some subcontractors
6			Payroll is capped at $100k per employee
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8	Interest Rate	3.75% for businesses/2.75% for non-profits	Not to exceed 4% (banks may vary)
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10	Term Length	Up to 30 years	2 to up to 10 years
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12	First Payment Due	1 year after loan origination (interest accrues during deferment)	At least 6 months (interest accrues during deferment
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14	Uses of Money	Operating Costs and financial obligations that you could have met without disaster	Payroll costs (as defined above), group healthcare benefits, insurance premiums, and interest (but not principal) on mortgages or other debt incurred prior to February 15, 2020, rent on any lease in force prior to February 15, 2020 and utility payments
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16	Collateral Required?	UCC Lien against assets	None
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18	Personal Guarantee	Yes for > $200000	No
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20	Loan Forgiveness	No. However, borrowers can receive $10,000 in an emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue loss.	Yes – calculated as the amount spent by the borrower during an 8-week period after the origination date of the loan on: payroll costs (as defined above), interest payment on any mortgage incurred prior to February 15, 2020, payment of rent on any lease in force prior to February 15, 2020, and payment on any utility for which service began before February 15, 2020. Payroll costs are subject to the same exclusions as noted above
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22	Reduction in Forgiveness	NA	The amount forgiven is reduced based on failure to maintain the average number of full-time equivalent employees versus the period from either February 15, 2019, through June 30, 2019, or January 1, 2020, through February 29, 2020, as selected by the borrower. The amount forgiven is also reduced to the extent that compensation for any individual making less than $100,000 per year is reduced by more than 25% measured against the most recent full quarter. Reductions in the number of employees or compensation occurring between February 15, 2020, and 30 days after enactment of the CARES Act will generally be ignored to the extent that reductions are reversed by June 30, 2020. Forgiven amounts will not constitute cancellation of indebtedness income for federal tax purposes.
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24	How Long does it take?	2-3 weeks, but $10,000 says possible in 3 days	Unknown now
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26	When can one apply?	Now. Application is live on SBA site: https://covid19relief.sba.gov/#/	No. SBA says April 3rd, but Banks need to develop plan and applications.
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28	Who can apply?	Small businesses with less than 500 employees and $35 million in revenue. Applicants for SBA loan programs typically must include their affiliates when applying size tests to determine eligibility.	Businesses and entities must have been in operation on February 15, 2020 and have 500 or fewer employees. There are some exceptions based on industry – see below. Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.
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30			Note: A business can receive EIDL loan and then refinance into a PPP Loan that is eligible for Loan Forgiveness
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