There are several types of SBA loans available right now, there are some very important keys facts to understanding them. Let's start with the PPP = Paycheck Protection Program, this loan is the one my clients have inquired about the most. The draw for many is the fact that it has the potential to be converted to a grant. The purpose of this loan is to help companies keep their employees on payroll. The loan amount is determined by: 2.5x your average monthly payroll costs capped at $100k per employee, maximum of $10M per borrower. The loan will also cover the businesses mortgage interest, rent and utilities. The most important fact to know is that the loan is only considered for forgiveness if at least 75% of the loan was used for payroll costs. To apply for this loan visit your banks website. Most banks are requiring that you are a current customer of theirs in order to apply for the loan with them. You can visit the SBA website for additional information at: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp#section-header-5
The EIDL = Economic Injury Disaster Loan is for fixed expenses such as insurance, mortgage interest, rent, accounts payable and payroll. You may project up to a year of damage as a result of the pandemic. You can obtain up to $2 million for our business at a rate of 3.75% (APR) with terms up to 30 years, payments can be deferred up to 12 months based on SBA determination. Businesses with less than 500 employees are eligible to apply. This is a loan and is not forgivable. In addition credit score and collateral are supporting factors in the application, but not necessarily determining. There is also an option on this loan you can request a $10k advance.
To read additional information about the SBA loan options visit their website at: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
I am happy to supply you with documents I have complied that explain the key points of the loans. Sign up for my newsletter at info@brooksbusinesssupport.com to receive additional SBA loan information.