The CARES Act includes a number of relief programs for small businesses. The main difference between a PPP loan and an EIDL is that you have to spend at least 60% of the PPP loan on payroll expenses. Also, unlike EIDL loans, PPP loans are not issued directly from the US Treasury. With the Economic Injury Disaster Loan, you apply directly to the SBA, not to individual lenders.

EIDL grants award money based on the number of employees you have. You’ll qualify for $1,000 per employee, up to a maximum of $10,000. To qualify for the full targeted $10,000 EIDL grant, a business must:

· Be located in a low-income community, and

· Have suffered an economic loss greater than 30%, and

· Employ not more than 300 employees

In addition, the business must qualify as an eligible entity as defined in the CARES Act:

· A small business, cooperative, ESOP Tribal concern, with fewer than 500 employees.

· An individual who operates under as a sole proprietorship, with or without employees, or as an independent contractor; or

· A private non-profit or small agricultural cooperative.

· The business must have been in operation by January 31, 2020.

· The business must be directly affected by COVID-19.

More details are available from the SBA at:

The new PPP has $284.5 billion available, including $35 billion for first-time loans, and has several important differences from the original PPP.

Key PPP updates include:

o PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;

o PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;

o The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;

o The PPP provides greater flexibility for seasonal employees;

o Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and

o Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.

You can apply for both grants. However, you cannot “double dip” and use funds from both loan programs for the same purpose.