By: Mary Jones
Traveling knowledge
Let’s start off by looking at the two loan programs the Small Business Administration provided to business owners during 2020 and 2021 to help you understand EIDL vs PPP loans
Both of these two emergency loan programs, the EIDL and the PPP, may be forgivable in part. That means that you don’t have to pay them back as long as you meet certain requirements.
However, EIDL loans do have a deferment period. Any EIDL loan approved in 2020, 2021, and 2022 can be deferred up to 30 months from the date of the note
If you successfully qualified for a Targeted EIDL Advance and received the funds, forgiveness is automatic; there is no need to apply for forgiveness
The Supplemental Targeted Advance provided especially hard-hit businesses in low-income areas an additional $5,000 in grant money. Like the regular Targeted Advance
Shuttered Venue Operators Grant (SVOG) was a grant introduced in April 2021 to aid live venues, movie theaters, museums, and talent agents that suffered economic losses due to the pandemic and lockdowns.
Restaurant Revitalization Fund (RRF) was a grant introduced in 2021 to aid restaurants negatively affected by COVID-19 and the restrictions imposed to control its spread.
There is no need to apply for EIDL forgiveness. Remember, EIDL loans cannot for forgiven. EIDL grants are automatically forgiven, provided you use the funds on approved expenses.
EIDL loans come with a 3.75% fixed interest rate for businesses and a 2.75% fixed interest rate for private nonprofits.
There are two parts to the EIDL program: loans and grants. The EIDL loan — which can be as high as $2 million — is generally not forgivable. You’ll need to repay an EIDL loan
The Small Business Administration (SBA) offers EIDLs within days of a successful application. Traditionally, these loans are up to $2 million.
– has 500 employees or fewer. – has more than 500 employees but meets the SBA’s industry size standards for this pandemic. – is organized for profit.