The Small Business Administration announced it’s reopening the Economic Injury Disaster Loan (EIDL) and EIDL Advance program to all eligible small business applicants experiencing hardship due to COVID-19. NADA reminds dealers that new SBA Paycheck Protection Program loan applications must be filed by June 30. Dealers may also want to consider the Federal Reserve Board’s Main Street Lending Program (MSLP).
Note: Borrowers may not have more than one PPP loan. Borrowers may apply for both an EIDL and a PPP loan, but cannot spend the funds on the same expenses. Interested dealers should consult with their CPAs and at least one prospective lender. A breakdown of the different programs:
- EIDL: Maximum loan $2 million; maximum forgivable $10,000; 3.75%/up to 30 years
- PPP: Maximum loan $10 million; maximum forgivable is total loan amount spent on qualifying expenses; 1%/up to five years
- MSLP: Maximum loan $35 million (can be higher by expanding an existing loan); none of the loan amount is forgivable; Libor + 300 points/up to five years