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For small business, one of the more important parts of federal coronavirus relief is the enhancement of the SBA 7(a) loan program, particularly the introduction of the Paycheck Protection Program. The Paycheck Protection Program gives the SBA the ability to guarantee hundreds of billions in loans to small businesses via a national network of banks. The Paycheck program provides a forgivable loan for eight or twenty-four weeks of cash-flow assistance to small businesses. Borrowers can also apply for an emergency grants to meet immediate needs, as well as for an Express Loan.
There have been two different times PPP loans have been made available to small businesses. The first was under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March of 2020. The second was with the Emergency Coronavirus Relief Act of 2020 (ECRA). A detailed comparison of the CARES Act and ECRA coronavirus relief loans, details on how to apply, articles and FAQs are below.
For information on State and Local coronavirus relief programs, please see this page.
Loan Comparison
Standard
CARES Act (Mar. 2020)
ECRA(Dec. 2020)
Loan Comparison
Paycheck Protection Program (PPP1 & PPP2)MORE INFORMATION
Paycheck Protection Program (PPP1 & PPP2)MORE INFORMATION
How to ApplyStandardClick Here Learn How to Apply
CARES Act (Mar. 2020)Click Here to Learn How to Apply for PPP1
ECRA(Dec. 2020)Click Here to Learn How to Apply for PPP2
Who is EligibleStandard●ĂQܲھ ●ĂFor profit businesses only●ĂEngaged in, or propose to do business in, the U.S. or its territories●ĂOwner equity to invested●ĂUsed alternative financial resources, including personal assets, before seeking financial assistance●ĂNot on the excluded business list
CARES Act (Mar. 2020)●ĂOperating on February 15, 2020●ĂAny business, nonprofit, veterans group, or tribal business with 500 or fewer employees including●ĂSole proprietors●ĂIndependent contractors●ĂEligible self-employed workers●ĂHotel and food service chains and franchisees with 500 or fewer employees per location
ECRA(Dec. 2020)●ĂOperating on February 15, 2020●ĂAny business, nonprofit, veterans group, or tribal business with 300 or fewer employees (or alternative SBA size standard per industry)●Ă25% reduction of gross receipts in any one quarter in 2020 as compared to that same quarter in 2019
Allowed usesStandard●ĂAcquire land●ĂPurchase a building●ĂConvert, expand or renovate buildings●ĂAcquire and install fixed assets●ĂAcquire inventory●ĂPurchase supplies and raw materials●ĂPurchase a business●ĂStart a business●ĂLeasehold improvements●ĂTerm working capital●ĂRefinance certain debts
CARES Act (Mar. 2020)In addition to normal uses:●ĂPayroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes●ĂInterest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) ●ĂRent payments●ĂUپپ●ĂSalaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act●ĂOther debt obligations
ECRA(Dec. 2020)In addition to normal uses:●ĂPayroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes●ĂInterest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) ●ĂRent payments●ĂUپپ●ĂSalaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act●ĂOther debt obligations●ĂAdditional covered expenses including operating costs; supplier costs; property damage costs; and worker protection costs
Maximum LoanStandard$5M
CARES Act (Mar. 2020)Lesser of: average fixed payroll costs X 2.5 timesor $10M max
ECRA(Dec. 2020)Lesser of: average fixed payroll costs X 2.5 timesor $2M max; X 3.5 times payroll for NAICS 72 restaurant, lodging, food services businesses
Interest RateStandardVariable: Prime + 2.25% to 4.75% depending on amount and term of loanFixed: 5% to 8%
CARES Act (Mar. 2020)1%
ECRA(Dec. 2020)1%
TermStandard25 years for real estate
10 years for equipment
10 years of working working capital or inventory loanCARES Act (Mar. 2020)5 years
ECRA(Dec. 2020)5 years
FeesStandard2% - 3% of loan
CARES Act (Mar. 2020)Waived
ECRA(Dec. 2020)Waived
Prepayment PenaltiesStandardFor certain terms loans 15 years or more
CARES Act (Mar. 2020)Waived
ECRA(Dec. 2020)Waived
CollateralStandardNone up to $25K. For loans exceeding $350K, SBA requires maximum collateral up to principal amount
CARES Act (Mar. 2020)Waived
ECRA(Dec. 2020)Waived
Payment defermentStandardN/A
CARES Act (Mar. 2020)When SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for
ECRA(Dec. 2020)When SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for
Loan forgivenessStandardN/A
CARES Act (Mar. 2020)Forgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:●ĂPayroll costs●ĂMortgage interest payments●ĂRent payments●ĂUtility paymentsNOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction
ECRA(Dec. 2020)Forgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:●ĂPayroll costs●ĂMortgage interest payments●ĂRent payments●ĂUtility payments●ĂOther covered operating costs; supplier costs; property damage costs; and worker protection costs NOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction
Funding sourceStandardSBA matches Lender
CARES Act (Mar. 2020)SBA matches Lender and pays Borrower's Interest and principal if deferred
ECRA(Dec. 2020)SBA matches Lender and pays Borrower's Interest and principal if deferred
SBA guarantee to lenderStandard85% < $150K > 75%
CARES Act (Mar. 2020)100%
ECRA(Dec. 2020)100%
Paycheck Protection Program (PPP1 & PPP2)MORE INFORMATION
Paycheck Protection Program (PPP1 & PPP2)MORE INFORMATION
How to ApplyStandardClick Here Learn How to Apply
CARES Act (Mar. 2020)Click Here to Learn How to Apply for PPP1
ECRA(Dec. 2020)Click Here to Learn How to Apply for PPP2
Who is EligibleStandard●ĂQܲھ ●ĂFor profit businesses only●ĂEngaged in, or propose to do business in, the U.S. or its territories●ĂOwner equity to invested●ĂUsed alternative financial resources, including personal assets, before seeking financial assistance●ĂNot on the excluded business list
CARES Act (Mar. 2020)●ĂOperating on February 15, 2020●ĂAny business, nonprofit, veterans group, or tribal business with 500 or fewer employees including●ĂSole proprietors●ĂIndependent contractors●ĂEligible self-employed workers●ĂHotel and food service chains and franchisees with 500 or fewer employees per location
ECRA(Dec. 2020)●ĂOperating on February 15, 2020●ĂAny business, nonprofit, veterans group, or tribal business with 300 or fewer employees (or alternative SBA size standard per industry)●Ă25% reduction of gross receipts in any one quarter in 2020 as compared to that same quarter in 2019
Allowed usesStandard●ĂAcquire land●ĂPurchase a building●ĂConvert, expand or renovate buildings●ĂAcquire and install fixed assets●ĂAcquire inventory●ĂPurchase supplies and raw materials●ĂPurchase a business●ĂStart a business●ĂLeasehold improvements●ĂTerm working capital●ĂRefinance certain debts
CARES Act (Mar. 2020)In addition to normal uses:●ĂPayroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes●ĂInterest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) ●ĂRent payments●ĂUپپ●ĂSalaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act●ĂOther debt obligations
ECRA(Dec. 2020)In addition to normal uses:●ĂPayroll costs, including payments for vacation, parental, family, medical or sick leave; severance payments; payments required for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes●ĂInterest payments on any mortgage obligations or other debt obligations incurred before February 15, 2020 (but not any payments or prepayments of principal) ●ĂRent payments●ĂUپپ●ĂSalaries, but cannot be used for compensation of individual employees, independent contractors, or sole proprietors in excess of an annual salary of $100,000; compensation of employees with a principal place of residence outside the United States; or leave wages already covered by the Families First Coronavirus Response Act●ĂOther debt obligations●ĂAdditional covered expenses including operating costs; supplier costs; property damage costs; and worker protection costs
Maximum LoanStandard$5M
CARES Act (Mar. 2020)Lesser of: average fixed payroll costs X 2.5 timesor $10M max
ECRA(Dec. 2020)Lesser of: average fixed payroll costs X 2.5 timesor $2M max; X 3.5 times payroll for NAICS 72 restaurant, lodging, food services businesses
Interest RateStandardVariable: Prime + 2.25% to 4.75% depending on amount and term of loanFixed: 5% to 8%
CARES Act (Mar. 2020)1%
ECRA(Dec. 2020)1%
TermStandard25 years for real estate
10 years for equipment
10 years of working working capital or inventory loanCARES Act (Mar. 2020)5 years
ECRA(Dec. 2020)5 years
FeesStandard2% - 3% of loan
CARES Act (Mar. 2020)Waived
ECRA(Dec. 2020)Waived
Prepayment PenaltiesStandardFor certain terms loans 15 years or more
CARES Act (Mar. 2020)Waived
ECRA(Dec. 2020)Waived
CollateralStandardNone up to $25K. For loans exceeding $350K, SBA requires maximum collateral up to principal amount
CARES Act (Mar. 2020)Waived
ECRA(Dec. 2020)Waived
Payment defermentStandardN/A
CARES Act (Mar. 2020)When SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for
ECRA(Dec. 2020)When SBA remits loan forgiveness amount to bank if borrower applies for forgiveness within 10 months after end of loan period; or 10 months from end of covered period if no forgiveness applied for
Loan forgivenessStandardN/A
CARES Act (Mar. 2020)Forgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:●ĂPayroll costs●ĂMortgage interest payments●ĂRent payments●ĂUtility paymentsNOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction
ECRA(Dec. 2020)Forgiveness for 8 or 24 weeks (borrower's choice) from date of loan origination for:●ĂPayroll costs●ĂMortgage interest payments●ĂRent payments●ĂUtility payments●ĂOther covered operating costs; supplier costs; property damage costs; and worker protection costs NOTE: Forgiveness contingent on keeping employees at 60% or greater of prior wages, or proportional reduction
Funding sourceStandardSBA matches Lender
CARES Act (Mar. 2020)SBA matches Lender and pays Borrower's Interest and principal if deferred
ECRA(Dec. 2020)SBA matches Lender and pays Borrower's Interest and principal if deferred
SBA guarantee to lenderStandard85% < $150K > 75%
CARES Act (Mar. 2020)100%
ECRA(Dec. 2020)100%
Loan Comparison
SBA 7(b) Economic Injury Disaster Loan (EIDL)
SBA 7(b) Economic Injury Disaster Loan (EIDL)
How to ApplyStandardClick Here to Learn How to Apply
CARES Act (Mar. 2020)Click Here to Learn How to Apply for a Disaster Loan
ECRA(Dec. 2020)Same, but now targeted toward low income borrowers
Allowed UsesStandardWorking capital for ordinary and necessary operating expenses
CARES Act (Mar. 2020)Working capital for ordinary and necessary operating expenses
ECRA(Dec. 2020)Same
Maximum LoanStandard$2M
CARES Act (Mar. 2020)$2M
ECRA(Dec. 2020)Same
Interest RateStandardUp to 4%
CARES Act (Mar. 2020)Businesses 3.75%Nonprofits 2.75%
ECRA(Dec. 2020)Same
TermStandard30 years maximum
CARES Act (Mar. 2020)30 years maximum
ECRA(Dec. 2020)Same
Turn Around TimeStandard2 to 3 weeks or longer
CARES Act (Mar. 2020)Same day
ECRA(Dec. 2020)Same
CollateralStandardNone up to $25K.
For loans exceeding $350K, SBA requires maximum collateral up to principal amountCARES Act (Mar. 2020)Waived
ECRA(Dec. 2020)Same
SBA EIDL GrantStandardNone
CARES Act (Mar. 2020)Up to $10K ($1K per employee) dispersed within three days for ●ĂStartups●ĂCooperatives and ●ĂESOPs with fewer than 500 employees, and ●ĂAny individual operating as a sole proprietor or an independent contractor
ECRA(Dec. 2020)Same
SBA 7(b) Economic Injury Disaster Loan (EIDL)
SBA 7(b) Economic Injury Disaster Loan (EIDL)
How to ApplyStandardClick Here to Learn How to Apply
CARES Act (Mar. 2020)Click Here to Learn How to Apply for a Disaster Loan
ECRA(Dec. 2020)Same, but now targeted toward low income borrowers
Allowed UsesStandardWorking capital for ordinary and necessary operating expenses
CARES Act (Mar. 2020)Working capital for ordinary and necessary operating expenses
ECRA(Dec. 2020)Same
Maximum LoanStandard$2M
CARES Act (Mar. 2020)$2M
ECRA(Dec. 2020)Same
Interest RateStandardUp to 4%
CARES Act (Mar. 2020)Businesses 3.75%Nonprofits 2.75%
ECRA(Dec. 2020)Same
TermStandard30 years maximum
CARES Act (Mar. 2020)30 years maximum
ECRA(Dec. 2020)Same
Turn Around TimeStandard2 to 3 weeks or longer
CARES Act (Mar. 2020)Same day
ECRA(Dec. 2020)Same
CollateralStandardNone up to $25K.
For loans exceeding $350K, SBA requires maximum collateral up to principal amountCARES Act (Mar. 2020)Waived
ECRA(Dec. 2020)Same
SBA EIDL GrantStandardNone
CARES Act (Mar. 2020)Up to $10K ($1K per employee) dispersed within three days for ●ĂStartups●ĂCooperatives and ●ĂESOPs with fewer than 500 employees, and ●ĂAny individual operating as a sole proprietor or an independent contractor
ECRA(Dec. 2020)Same
Loan Comparison
SBA Express Loan Program
SBA Express Loan Program
How to ApplyStandardClick Here to Learn How to Apply
CARES Act (Mar. 2020)Click Here to Learn How to Apply for an Express Loan
ECRA(Dec. 2020)Same
Maximum LoanStandard$350K
CARES Act (Mar. 2020)$1M until December, then $500K
ECRA(Dec. 2020)
Allowed UsesStandard●ĂLong-term working capitalAccounts payable, purchasing inventory, and other operational expenses ●ĂProviding short-term working capital●ĂSeasonal financing, contract performance, construction financing, and/or export●ĂPurchasing real estatePurchasing equipment, furniture, machinery, supplies, and materials●ĂCovering construction and/or renovation costs●ĂEstablishing or acquiring a new business, or expanding an existing business●ĂRefinancing existing business debt (so long as the lender and ultimately the SBA are not in a position to sustain a loss through refinancing)
CARES Act (Mar. 2020)●ĂOperating capital
ECRA(Dec. 2020)
TermStandard7 years maximum
CARES Act (Mar. 2020)7 years maximum
ECRA(Dec. 2020)Same
Turn Around TimeStandard36 hours
CARES Act (Mar. 2020)36 hours
ECRA(Dec. 2020)Same
CollateralStandardNone up to $25KLender discretion up to $350K maximum
CARES Act (Mar. 2020)None up to $25K. Lender discretion up to $350K maximum
ECRA(Dec. 2020)Same
SBA Express Loan Program
SBA Express Loan Program
How to ApplyStandardClick Here to Learn How to Apply
CARES Act (Mar. 2020)Click Here to Learn How to Apply for an Express Loan
ECRA(Dec. 2020)Same
Maximum LoanStandard$350K
CARES Act (Mar. 2020)$1M until December, then $500K
ECRA(Dec. 2020)
Allowed UsesStandard●ĂLong-term working capitalAccounts payable, purchasing inventory, and other operational expenses ●ĂProviding short-term working capital●ĂSeasonal financing, contract performance, construction financing, and/or export●ĂPurchasing real estatePurchasing equipment, furniture, machinery, supplies, and materials●ĂCovering construction and/or renovation costs●ĂEstablishing or acquiring a new business, or expanding an existing business●ĂRefinancing existing business debt (so long as the lender and ultimately the SBA are not in a position to sustain a loss through refinancing)
CARES Act (Mar. 2020)●ĂOperating capital
ECRA(Dec. 2020)
TermStandard7 years maximum
CARES Act (Mar. 2020)7 years maximum
ECRA(Dec. 2020)Same
Turn Around TimeStandard36 hours
CARES Act (Mar. 2020)36 hours
ECRA(Dec. 2020)Same
CollateralStandardNone up to $25KLender discretion up to $350K maximum
CARES Act (Mar. 2020)None up to $25K. Lender discretion up to $350K maximum
ECRA(Dec. 2020)Same
Emergency Relief PվƵ
●ĂCash Flow Analysis●ĂTax Planning●ĂTax Extension Preparation●ĂTax Appeals and Tax Resolution●ĂState and Local Tax Relief●ĂSpecial Deductions and Credits●ĂS Corps and Partnership Budgeting●ĂC Corp Budgeting●ĂSales and Use Tax Relief●ĂSBA Loan Consulting
How to Apply for a CARES Act SBA Loan or Grant
Here’s what you will need to apply for a CARES Act SBA loan or grant
How to Apply for a Paycheck Protection Program (PPP) Loan - Applications Due by August 8th
We are guided by efficient work with clients. Here’s what you will need to apply for an SBA Paycheck Protection Program Loan:
How to Apply for an SBA Disaster Loan or Grant
We are guided by efficient work with clients. Here’s what you will need to apply for an SBA Economic Injury Disaster Loan unless the SBA or your lender decides to accept an expedited application:
How to Apply for an SBA Express Loan
We are guided by efficient work with clients. Here’s what you will need to apply for an SBA Express Loan unless the SBA or your lender decides to accept an expedited application:
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