Compare PPP and EIDL Programs
|Who is the lender?||The SBA||As an approved SBA lender, Orrstown Bank will make the loan.|
|What is the maximum amount of the loan?||The maximum loan amount under the EIDL is $2 million.||
The maximum loan size is $10 million. The calculation is as follows:
2.5x the average monthly “payroll” costs, measured over the 12 months preceding the loan origination date. Seasonal business may use the period February 15, 2019 – June 30, 2019 or March 1, 2019 – June 30, 2019 to calculate the average payroll
Payroll includes salaries, commissions, tips, certain employee benefits (including health insurance and retirement benefits), state and local taxes and certain types of compensation to sole proprietors or independent contractors. Payroll costs specifically exclude compensation of an individual employee in excess of an annual salary of $100,000, foreign employees, FICA and income tax withholdings
|What is the annual interest rate?||3.75% for businesses, 2.75% for non-profits||1%|
|What Is the term of the loan?||Up to 30 years||2 years|
|When is the first loan payment due?||One year after the loan origination date (interest is accrued during the deferment)||At least six months after the loan origination date (interest is accrued during the deferment)|
|What can the loan be used for?||Financial obligations and operating expenses that could have been met had the disaster not occurred||Payroll costs (as defined above), group healthcare benefits, insurance premiums, and interest (but not principal) on mortgages or other debt incurred prior to February 15, 2020, rent on any lease in force prior to February 15, 2020 and utility payments|
|What collateral is required?
||The SBA will place a UCC lien against the assets of the business||No collateral is required from either the business or its owners|
|Is a personal guarantee required?||Yes, for loans > $200,000, owners of > 20% of the business, managing members of LLCs, managing partners of LPs. However, no liens will be taken against real estate owned by the guarantor||No|
|Is this a forgivable loan?||No, but you may be eligible to receive a grant for up to $10,000 to be used towards the loan.||Generally, two months of payroll costs, interest paid on mortgages, rent, and utility payment. The amount forgiven is based on maintaining full-time employees and compensation levels. Call for details.|
|Can I apply for both Loans?||
You may apply for both loans, however, the proceeds may not be used for the same purpose.
|You may apply for both loans, however, the proceeds may not be used for the same purpose.|
|What businesses/entities can apply and what are the affiliation rules?
||Small businesses. There are several standards the SBA uses to define a small business, and it varies by industry. As a general guide, less than 500 employees and $35 million in revenue would typically qualify. Applicants for SBA loan programs typically must include their affiliates when applying size tests to determine eligibility. This means that employees of other businesses under common control would count toward the maximum number of permitted employees||
Businesses and entities must have been in operation on February 15, 2020 and have 500 or fewer employees. There are some exceptions based on industry – see below
Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.
Any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a NAICS code beginning with 72 (Accommodation and Food Services companies)
Affiliation rules are also waived for franchises with codes assigned by the SBA, as reflected on the SBA franchise registry and businesses that receive financial assistance from one or more small business investment companies (SBIC)