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CARES Act SBA Loan Comparison

Economic Injury Disaster Loan (EIDL)

Who is the lender?

What is the loan max?






What is the loan term?

What is the interest rate?

What can proceeds be used for?







Personal guarantee?


Loan forgiveness?



Maximum loan is $2m, with a $10k loan advance possible distributed within 3 days. Applicants are not required to repay the advance if denied the loan. Advance limited to $1,000 per employee




Up to 30 years


3.75% for businesses, 2.75% for non-profits


Operating expenses




SBA will place a lien against business assets


Yes, for certain businesses and loans



Paycheck Protection Program (PPP)

A qualifying bank that provides SBA 7(a) loans


Maximum loan is 2.5 times your average monthly payroll costs OR your average monthly profit if a sole proprietorship or partnership with no payroll; excluding individual amounts in excess of $100,000 in annual compensation/profit



2 years (5 years for loans 6/5/20 or later)




Payroll costs, health and retirement benefits, interest on mortgage debt obligations, rent and utility payments. Payroll costs do not include federal payroll taxes





Either all or a portion of the loan is forgiven depending on whether full staff is retained and at least 60% of loan was used for qualified payroll costs over an 24-week period beginning with the date of the loan disbursement. Forgiven loan amounts will not be considered Cancellation of Debt income for federal tax purposes nor will qualified expenses be tax deductible

Updated 6/9/2020 (includes changes as part of the Paycheck Protection Program Flexibility Act of 2020 passed  on June 5, 2020.) This is a simplified comparison chart for informational purposes only. Please contact our office if you have any questions. For more information visit:

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