MPL General Counsel Corner – States aren’t the only thing reopening – Welcome back EIDL
Yesterday, the EIDL application portal opened up for all small businesses again. Below are the key points about an EIDL. The highlighted section is the most common question I have received regarding the EIDL versus the PPP.
- Who is eligible: Businesses, Coops, ESOPs and tribal small businesses with < 500 employees; sole proprietor, independent contractors, most private non-profits
- The max loan is $2m at a 3.75% for businesses and 2.75% for non-profits with up to a 30 year term
- Up to $200k can be approved with a personal guarantee
- Approval can be based on a credit score and no first-year tax returns are required
- No collateral required for loans of <$25k
- Borrowers must allow the SBA to review their tax records
- You are eligible to apply for up to a $10k advance under the EIDL, which is a grant and does not have to be repaid. The amount of the advance will directly reduce your forgiveness amount under the PPP dollar for dollar. The balance of the EIDL does not impact the forgivable amount under the PPP.
- EIDL funds cannot be used for the same purpose as a PPP loan.
Here are some other things that may be important or relevant for you:
- Upcoming Webinars and Helpful Resources