Maximum of $10 million

A $10,000 advance is available by request (distributed within 3 days). If you are denied an EIDL, you do not have to repay the advance!

2.5x your average monthly payroll* in the 12 months prior to the date of loan origination.

Seasonal businesses should use February 15th, 2019 – June 30th, 2019 and/or March 1st, 2019 – June 30th, 2019.

*Payroll, as determined by the SBA, includes employee salaries, commissions, tips, state and local taxes, payments to sole proprietors and contractors, and essential employee benefits like health insurance and retirement. 

Compensation for individual employees that exceed $100,000 annually, foreign employees, FICA and income tax withholdings are excluded from this amount.

The SBA will file a UCC lien against the business assets. 

In addition, loans greater than $200,000 will require a personal guarantee from 20% stakeholders, LLC members, and partners. 

Yes

Determined by the amount spent by the borrower in the 8-weeks following the date of loan origination, and 75% must have been used on payroll* costs.

The amount of loan forgiveness your business is eligible for will
be reduced if:

• You do not continue to maintain the average number of Full Time Employees (or equivalent ) compared to either the period of 2/15/19 – 6/30/19 or 1/1/20 – 2/29/20, as chosen by the borrower as the best representation of their average roster, or
   
• You reduce compensation for any employee making less than $100,000 annually by more than 25%

The SBA still needs to deliver their guidelines to lenders and determine their requirements. Then, the lenders themselves will develop their own processes.

We’d like to assume that lenders will be more than ready to take applications immediately when the SBA allows… so, maybe 2-3 weeks?

A small business is defined by the SBA as a business with less than 500 employees and $35 million in revenue.

However, employees of other businesses under common control must be counted as well.

Businesses and entities must have been in operation on February 15, 2020 and have 500 or fewer employees. There are some exceptions based on the industry:

• 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)