The CARES Act signed by the President last week introduced a new small business relief measure called the Paycheck Protection Program. The Program reserves nearly $350 billion to help small businesses maintain payroll and other important business costs through the duration of the COVID-19 pandemic.
As a small business owner, there are now two affordable financing options—The CARES Act’s Paycheck Protection Program and the Small Business Association’s Economic Injury Disaster Loan (EIDL). Following is a comparison of the two loan programs:
An Infographic Comparison Chart
What’s the difference between the Paycheck Protection Program forgivable loan vs. the SBA’s Economic Injury Disaster Loan (EIDL)? See our chart for a comparative look at the two financing options.
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. According to the U.S. Treasury, starting April 3, 2020, small businesses and sole proprietorships can apply. Independent contractors and self-employed individuals can apply starting April 10, 2020.
Contact your Alloy Silverstein accountant and advisor to walk through your options to see which is the best fit for your organization. We can also help with the necessary paperwork and financial documents that may be required to fulfill the loan application.
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