Yesterday, Congress passed another stimulus package which includes replenishing the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). DCA will be facilitating three webinars TODAY, Friday, April 24th at 11 a.m., 1 p.m. and 4 p.m. Click here to access; all three webinars are listed on the landing page. Once you click on a session, it takes you to the Zoom link and the contact information.
The Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) are two different programs funded by the CARES ACT, which include stimulus funds in the form of loans and grants for America’s small businesses. The two loans share a lot of similarities but also have some important differences.
The EIDL is a loan of up to $2 million (depending on how much you’re approved for) meant to help businesses cover six months of operational expenses. You do have to eventually pay the money back. However, EIDL loans also include a $1,000 to $10,000 cash advance which you do not have to repay—even if you are ultimately rejected for the EIDL loan.
PPP loans can also be used for operational expenses, but their main purpose is to cover eight weeks of payroll; you need to spend at least 75% of the loan on payroll expenses. You can also use a portion of the loan to cover mortgage, rent or utility expenses. PPP loans can be as large as $10 million (depending on your payroll expenses) and will be forgiven as long as you follow all the rules.
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