EIDL

PPP LOAN

This is an Economic Injury Disaster Loan (SBA 7(b))

This is a Paycheck Protection Program Loan (“PPP Loan”) (SBA 7(a))

Covered period for substantial economic injury: January 31, 2020 through December 31, 2020

Covered period for loan: February 15, 2020 through June 30, 2020.

Loan Proceeds can be used for payroll, working capital, accounts payable, fixed debts, other bills that cannot be paid due to COVID-19 impact

Loan Proceeds must be used for payroll costs (including employee salaries*, hourly wages, cash tips, paid sick or medical leave, and group health insurance premiums), and existing interest payments on mortgages, and rent payments, leases, and utility service agreements.payments. At least 75% of loan proceeds must be used for payroll costs.

*up to an annual rate of pay of $100,000.00

Loan Proceeds cannot be used for repair physical damage, refinance of debt incurred prior to COVID-19, payments on loans owned by a Federal Agency or a Small Business Investment Company licensed under the Small Business Investment Act, or to generally pay dividends or disbursement to owners, partners, officers or stockholders

Loan proceeds cannot be used for payments to independent contractors; prepayment of interest on mortgages or other debt obligations, payment of principal on mortgage or other debt obligations, other business related expenses not listed above (example – inventory).

Maximum Loan Amount is $2,000,000.00

Maximum Loan Amount is lesser of (1) $10,000,000.00 or (2) 250% of average monthly payroll expensescosts.

Terms: Up to 30 year term, 3.75% interest rate, payments are not due until 12 months after receipt, and interest doesn’t accrue until 12 months after receipt, waives personal guarantee for EIDLs less than $200,000.00, collateral is required on EIDLs greater than $25,000.00 (however EIDL will not be denied simply because collateral is not available).

Terms: Up to 102 year term, 1% interest rate capped at 4%, non-recourse, , no personal guarantee or collateral required., non-recourse, but if loan proceeds used for unauthorized purposes, SBA may have recourse against the shareholder, members or partners for such unauthorized uses.

EIDLs are not forgivable and must be repaid, but at the time of application a business can request an EIDL Emergency Grant which allows for a $10,000.00 advance at the time of application. The Emergency Grant does not have to be repaid, even if the application is denied. If you receive an Emergency Grant and are also approved for a PPP Loan, the amount of the Emergency Grant shall be reduced from the loan forgiveness amount for payroll costs on your PPP Loan. EIDLs taken out prior to April 3, 2020 may be refinanced under PPP Loan.

PPP Loans are forgivable. All covered costs (as laid out in the Loan Proceeds section above) during the covered time period (see covered period section above) are forgivable and do not need to be repaid.so long as at least 75% of the proceeds were used for payroll costs and none of the loan proceeds were used for unauthorized purposes. Loan forgiveness is not automatic and an application must be submitted to qualify. Accurate and thorough documentation of costs is highly advised in order to increase eligibility for forgiveness. Amounts that are forgiven are not included in gross income and are not taxable.