| Emergency Injury Disaster Loan | Paycheck Protection Program Loans | |
|---|---|---|
| Maximum Loan Amount | $2 million | $10 million |
| Grant/Forgiveness | Emergency grant of up to $10,000, available within three days of EIDL application. Can be used for: • Providing paid sick leave • Maintaining payroll • Meeting increased materials costs • Paying rent and mortgage • Repaying obligations | Borrower can request forgiveness of the principal portion of the loan for money used to cover payroll, mortgage interest, rent, and utilities |
| Interest Rate | 3.75% for businesses 2.75% for nonprofits | 1.00% on balance that remains after forgiveness |
| Repayment Period | Up to 30 years | 2 years for balance that remains after forgiveness |
| Eligibility | Must be directly affected by COVID-19 and fall under one of the following categories: • Businesses with < 500 employees • Cooperatives, ESOPs, and tribal small businesses (< 500 employees) • Sole proprietors, independent contractors | • Businesses and IRC Section 501(c)(3) nonprofits with < 500 employees • Sole proprietors, independent contractors, and eligible self-employed individuals • IRC Section 501(c)(19) veterans’ organizations and tribal concerns that meet the SBA size standards • Businesses with NAICS codes beginning in (72) may be eligible on a per location basis |
| Must Have Been in Business On | January 31, 2020 | February 15, 2020 |
| Where to Apply | SBA COVID-19 Disaster Assistance Portal | Local bank (but availability varies). Use Nav to fill out application and be matched to lender. https://www.nav.com/paycheck-protection-program-form/ |
| Personal Guarantee | For loans > $200,000 | None |
| Collateral Requirement | For loans > $25,000 | None |
| Payment Deferments | One year | At least six months |
| Allowable Uses of Funds | Items listed above under Grant/Forgiveness and: • Pay fixed debts, payroll, accounts payable, and other bills • NOT intended to replace lost sales/profits • Cannot be used to pay down long-term debt | • Payroll • Costs related to group health care benefit continuation • Salaries, commissions, and other compensations • Interest on mortgage obligation (but no principal or prepayment) • Rent • Utilities • Interest on pre-existing debt • Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020 |
| Credit Requirement | Personal credit check for all 20% or more owners | None |
| Funding Timeframe | Grant of up to $10,00 within three days. Next disbursement of $25,000 within a few weeks (projected). | Varies |
The Process of Analyzing Overhead
Analyzing overhead is a critical process that businesses undertake to optimize cost efficiency and ensure effective resource allocation. Overhead costs consist of a wide range of non-direct expenses incurred during the production or operation of goods and services.
