28 Mar Paycheck Protection Program & Economic Injury Disaster Loans(Updated – 4-1-2020)
The Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) are two federal loan programs aimed at helping small businesses who have been severely impacted by COVID-19. As one of the nation’s top SBA lenders, Live Oak Bank is committed to helping small businesses navigate their COVID-19 loan relief options.
For the Paycheck Protection Program, which is part of the new CARES stimulus package, you can receive 2.5 times your average monthly payroll at a 4% fixed rate and a 10-year term. For the Economic Injury Disaster Loan, you can receive up to $2,000,000 at a 3.75% interest rate with a 30-year term. For both programs, payment is deferred for 6 to 12 months.
Loan proceeds from each program can be applied to payroll expenses, rent, utilities and other operating expenses that can’t be paid because of COVID-19’s impact. For the Paycheck Protection Program, you can apply for loan forgiveness. The forgiveness program supports employment. If you don’t maintain certain levels of employees or compensation, then part of the loan will not be forgiven.
Ready to apply? For the Economic Injury Disaster Loan, you’ll work directly with the SBA. Apply through the SBA’s website at https://www.sba.gov/disaster/apply-fo… or your local SBA office. If you are interested in applying for the Paycheck Protection Program, we can help you! Sign up to be notified when we start accepting applications here: https://www.liveoakbank.com/paycheck-…