CHARLOTTE – There are lots of questions about the Economic Injury Disaster Loan (EIDL) VS the Paycheck Protection Program (PPP)
So, let’s get to it…
Here are a few Q&A’s:
Q) What is the difference between EIDL and PPP?
A) Paycheck Protection Program or PPP was signed into law by Congress to assist small businesses with much need support to keep workers on the payroll. The limit to this amount is $10 million dollars with a 1% interest rate with a 2 – 5-year payback option, no collateral was required, and the loan was forgiven if all employee retention criteria are met.
A) Economic Injury Disaster Loan or EIDL was designed to be a long-term direct loan program from the Small Business Administration. The goal was to provide relief to Small Businesses, Contractors, and Non-profits with six months of working capital to meet their financial obligation and operating expenses.
Q) Can I apply for both EIDL and PPP?
A) Yes. Borrowers can apply for both, but the funds cannot be used for the same purposes. A business that receives both programs will have the amount of the EIDL subtracted from the forgiveness amount of the PPP.
Q) What if I am NOT a US Citizen but my business meets all the other criteria for EIDL?
A) A Non-US Citizen who owns 20% or more of the business is eligible IF they are classified as a “Noncitizen National” OR “Qualified Alien.” Qualified Alien includes permanent residents with a current Green Card.
(More Q&A’s can be found on the SBA Website – https://www.sba.gov/document/support-faq-covid-19-economic-injury-disaster-loan-eidl)
Source: US Small Business Administration – Version 4 Effective 2020-11-23
Remember, You Can Count On me!