Please see the attached Comparison Chart for Payment Protection Program (PPP) vs SBA Economic Injury Disaster Loan (EIDL). (more detail in text below)
We have several SBA approved lenders in Monroe County, so we encourage you to reach out to your local banker and accountant to help advise you on the best option for your business. Click here to access our Member SBA Certified Lenders, Member Financial Institutes and Member Accounting Firms.
Courtesy of our friends at Cadence Bank:
The CARES Act, which was passed by both houses in Congress and signed into law by President Trump on March 27th, has set aside $350 billion to help small businesses during this worldwide pandemic and economic downturn.
Under the act, the SBA 7(a) loan provision known as the Paycheck Protection Program (PPP), provides 100% federally guaranteed loans to small businesses. For those borrowers that maintain their payrolls through the crisis or restore their payrolls afterward, these loans may be forgiven.
In addition to the PPP relief measure, the SBA’s Economic Injury Disaster Loan [sba.gov] (EIDL) was also established to provide financial relief for small businesses. Unlike typical SBA-backed loans, interested borrowers should apply directly to the SBA for these funds, not through a bank.
Please note, in accordance with Section 1102 (a)(2)(Q) of the CARES Act, you may apply for both the SBA Economic Injury Disaster Loan and the SBA 7(a) loan. However, these loans cannot be used for the same purpose.