While EIDL was open to only agricultural businesses, it has become available to all business owners who qualify as of June 25, 2020. The major difference is that the PPP provides funds to meet payroll and the EIDL covers the loss of profits and revenue. It’s an established program that provides aid to businesses in the wake of natural disasters, such as hurricanes, floods, and tornadoes.īoth programs are designed to aid businesses and help them stay afloat during hard times that aren’t avoidable. The Economic Injury Disaster Loan (EIDL) program isn’t new in the wake of the Coronavirus. What Is the Difference Between a PPP Loan and an EIDL? You can also apply for both the PPL and the EIDL. In some cases, you can get 100% of your PPL loan forgiven. If you’re approved for a PPP loan, you receive two and half times your current payroll with a maximum benefit of $10 million. Additional funds were allocated in another stimulus package and made available on April 24, 2020. The CARES Act allocated $659 billion to the PPP program, and it went quickly. This program is administered by the Small Business Administration (SBA) and its Business Loan Program Account. The goal was to help small businesses keep afloat and to provide financial relief to employees. What Is a PPP Loan?Īs part of the CARES Act, the PPP loan program was designed to provide funds to small businesses to continue meeting their payroll expenses for eight weeks and a few other associated expenses. But where are you going to get the money? The Paycheck Protection Program (PPP Loan) may be just what you need. You know that your employees make all the difference to your business, and you want to continue paying them during this trying time. Whether you had to close your doors or drastically cut down on your services, your business is suffering, and your employees are struggling. As a small business owner, in the last few months, the COVID-19 pandemic may have added a lot of stress to your company.
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