The Paycheck Protection Program (PPP) Loan
Businesses, nonprofits, and even self-employed individuals or independent contractors will be eligible to apply. The maximum loan amount for most borrowers will be 2.5 times payroll costs in a typical (pre-pandemic) month. A large portion of the loan will be forgivable based on the extent to which the borrower retains or rehires workers. These loans are not yet available. Will be offered through banks with delegated authority. First come first served basis. Funds are not being allocated by state. All businesses that meet requirements can be considered by the bank that align with bank policies and SBA requirements.
The house and President still need to sign and is expected to be executed by 3/27/2020. Expect 4 weeks or more before banks can accept applications and receive program details and several additional weeks to process and fund.
Economic Injury Disaster Loans (EIDL)
The first coronavirus supplemental bill funded Economic Injury Disaster Loans (EIDL), which are already available to apply for in most states. These loans provide small businesses with working capital of up to $2 million, at a low rate of 3.75% for businesses and 2.75% for nonprofits, to help overcome the temporary loss of revenue they are experiencing. Businesses must be deemed creditworthy and may have to provide collateral. To apply, visit this page on the SBA website: https://www.sba.gov/funding-programs/disaster-assistance.