SBA Loan Programs: Guide to the CARES Act changes for EIDL and PPP
The Coronavirus Aid, Relief and Economic Security (CARES) Act – the economic stimulus package signed into law by President Trump on Friday, Mar. 27, 2020 – allocates approximately $377 billion to enable the Small Business Administration (SBA) to provide disaster relief to:
- Existing SBA borrowers through six months of loan forgiveness
- New SBA borrowers through the expanded Economic Injury Disaster Loan (EIDL) Program and the new Paycheck Protection Program (PPP) – the new PPP loan program is available for eligible small businesses, including sole proprietors, and non-profits, veterans’ organizations and tribal business concerns, to provide a forgivable loan to cover payroll and other costs.
It's important to understand the EIDL and the PPP, as well as the additional financial and other relief that may be available under the CARES Act, to make meaningful planning decisions. Please check out our side-by-side comparison below to learn more about the differences between the modified EIDL program and the new PPP that you can consider in determining the right disaster relief options.
Be aware that there are several details still to be filled in by Treasury and SBA regulations, which include how lenders will be approved to provide PPP loans, and further guidance to come on the terms and conditions of PPP loans.
Download our SBA Loan Program Comparison below, your guide to the CARES Act changes for EIDL and PPP.
For additional information contact us at info@herbein.com.
