Here's a quick guide to the EIDL grant, EIDL loan, and PPP loan programs from the brand-new stimulus package. The PPP loan program is going live this week and we expect the same from the EIDL grant program as well.
We highly recommend you download our free Skip app to use our EIDL tracker, PPP tracker, stimulus tracker, and more.
This is for informational purposes only and based on the current reading of the relief legislation signed into law on December 27, 2020. In the case of EIDL, the SBA has not issued final rules and guidance. This is not tax, accounting, or legal advice.
- Up to $10,000 grant
- $40B available in two $20B pots
- “Targeted EIDL Advance” pot for $20B
- “Emergency EIDL Advance” pot for $20B
- More info on “Hello Skip” App or go to TrackEIDLGrant.com
Do You Qualify for “Targeted”?
- Less than 300 employees
- In low-income community (IRS definition)
- Gross revenue loss 30% or more (8 week period)
- If so, $10k less any previous advance
Do You Qualify for “Emergency”?
- Expecting similar rules as first go-around
- Geared toward people that did not receive first advance
- In most cases, there was a credit check
Why Is Timing So Important?
- Limited funding for both pots
- “Targeted” example: 2 million businesses x $10K = $20B
- “Emergency” example: 5 million businesses x $4K = $20B
- First go-around: 5.6 million businesses got Advance ($3.6K avg)
- Option for SBA EIDL loan
- 3.75% interest for businesses
- 2.75% interest for non-profits
- Up to $150,000 (this may change)
PPP Forgivable Loan
- Program is opening up week of January 11
- Available for 1st time and 2nd time applicants
- You don’t have to go with initial lender (if 2nd time applicant)
- More info on “Hello Skip” App or go to TrackPPPLoan.com
For First Time PPP Applicants
- Called “First Draw”
- 2.5x your monthly payroll
- First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
- Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—can apply
For Second Time PPP Applicants
- Called “Second Draw”
- 2.5x your monthly payroll
- Similar uses as above
- May be eligible if previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses; • Has no more than 300 employees; and • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
How To Apply
- Over 5,000 PPP lenders across the country from big banks to credit unions to fintech companies
- Many lenders work specifically with sole proprietors or less than 5 person businessesCompare recommended lenders on “Hello Skip” App or go to TrackPPPLoan.com under the PPP Loan Tracker.