On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.
You may be eligible for another loan program, the Paycheck Protection Program (PPP), which is available through participating lenders. Below is a comparison of the two loan programs:
The PPP and Full EIDL programs are mutually exclusive in regards to qualifying expenditures, however the ERTC may be claimed in addition to receiving an EIDL Loan for the same qualifying expenditures.
Employee Retention Tax Credit (ERTC):
Refundable payroll tax credit for 50% of wages and health benefits paid or incurred from 3/13/20 to 12/31/20 for the first $10,000 of wages/benefits paid per employee. This applies only for calendar quarters to which eligibility provisions are met.
Employers with greater than 100 full-time employees: Credit applies only to wages/health insurance provided to employees not providing services due to coronavirus-related circumstances.
Employers with fewer than 100 full-time employees: Credit applies to all employees wages/benefits.