Here are some of the most pressing questions and answers about these loans:
Can I apply for both loans?
A: Yes, you can apply for both a PPP and an EIDL loan, provided that you don’t use both loans for the same purpose. For example, if you decide to apply for a PPP loan and use those funds for employee payroll, your EIDL funds should not be used on the same expenses. Additionally, if you are able to secure a PPP loan, the $10,000 cash grant from EIDL will be subtracted from the forgiveness amount.
Who is eligible to apply for these loans?
- Businesses, nonprofit, and veterans service organizations with less than 500 employees, with certain exceptions; and - were operational as of January 30, 2020 (for EIDL) and February 15, 2020 or earlier (for PPP) - can show proof of payment for employee salaries, payroll taxes, or independent contractor fees.
- Businesses in the food and hospitality industry with more than one location who employ less than 500 employees per location.
- Self-employed and gig workers, including ride-sharing company drivers.
- The 500-employee threshold includes all statuses: full-time, part-time, etc.
Will SBA provide more information on these loans?
A: Yes, SBA will continue to provide further guidance in the coming weeks, in particular the affiliation rules and forgiveness of loans. They are also required to release guidance on payment deferrals within 30 days of enactments of the CARES Act. Additionally, the Senate has also recommended lenders to prioritize loans for small businesses and entities in underserved and rural markets, including veterans and members of the military community, small business concerns owned and controlled by socially and economically disadvantaged individuals, women and businesses in operation for less than two years.
Is there other help available?
A: You can find more information about this forgivable loan program at SBA.gov.