I know there have been several questions about EIDL vs PPP programs, but I wanted to give an update on where they are as of this morning. I’ve been in a deep dive into all these programs for the past week or so, so hopefully the following can shed a little light on what’s going on. This thing is moving so fast and I want as many of us to be able to benefit from these programs as possible.
Most major banks are offering the PPP loans, but many are requiring that you have at least a checking account with them to accept your application. So check your business bank’s website or your online portal for them to see where they will be hosting their applications. It sounds like most of the big banks will be doing their applications online. If you bank with a smaller bank I would reach out directly to them. Also, if you haven’t applied for the EIDL grant yet you should now. It’s very easy to do and has to be done online at this link: https://covid19relief.sba.gov/#/
Let me clarify about the EIDL/PPP situation, because it’s a little confusing.
In order to get the EIDL $10,000 grant (that you don’t have to pay back) you have to apply for an EIDL Loan and check a box towards the end of the process indicating you want the grant. You will reportedly get the grant at some point, whether or not you get approved for the EIDL and whether or not you decide to take the EIDL loan. But even if you have no desire for the loan, you can get the grant and use it for rent, payroll, etc. This is live now and you should do it ASAP.
The PPP is a separate program that must be applied for through your business bank (or another bank willing to accept your application, but this may be hit or miss). It will allow you to get a forgivable loan of 2.5x your average monthly payroll (e.g. your monthly payroll is $10k and they give you a $25k loan). At least 75% of this money must be used for payroll and only 25% can be used for rent and utilities, over an 8 week period, in order to be forgiven. Also, the idea behind this loan is that it will allow you to keep your employee and their payroll amounts at pre-covid levels. So there appear to be stipulations about maintaining employee numbers and their pay. This is where you need to pay attention because you have to maintain these levels for a certain period of time in order to be eligible for the loan forgiveness. Otherwise it’s just a 1% interest loan that has pretty favorable terms, but you have to pay back.
Reportedly, the EIDL grant and the PPP loan must be used on different expenses, or the PPP loan will be reduced $10,000 because of the grant. The details of this part are still a little unclear, so make sure you check into them.
There are a lot more details out there on these programs, but hopefully this was helpful. Good luck guys.
This community means the world to us. Thanks for all you do and we hope this information helps. If you haven’t already make sure to check out our blog on how to use btwb to run a virtual gym.
Also, if you’re not in the United States and have information about a stimulus package being offered in your country please feel free to share it with me and I’ll get it out to the community.
Co-Founder of BTWB as well as the founder and owner of CrossFit Kinnick. Board Member on the CrossFit Trainer (CCFT) Certification Board and a CrossFit CF-L3 Trainer.