Corona Virus Disaster Loan Assistance – AIO Financial
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In this episode we discuss the two main loan programs to help small business owners through the COVID-19 crisis (created as part of the $2 trillion COVID-19 relief package):
• Economic Injury Disaster Loans (EIDLs)
• SBA Cares Act Paycheck Protection Program Loans (PPPs)
EIDL: The Economic Injury Disaster Loan includes an emergency grant of up to $10,000 to be made within three days of application. These grants do not have to be repaid as long as funds are used for:
• providing paid sick leave to employees unable to work due to the direct effect of the COVID–19;
• maintaining payroll to retain employees during business disruptions or substantial slowdowns;
• meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains;
• making rent or mortgage payments; and
• repaying obligations that cannot be met due to revenue losses.
PPP: Paycheck Protection Program Loans, you can request forgiveness of the principal portion of the loan for the eight week period after you get the loan that covers:
• Payroll costs
• Interest on a mortgage
• Rent
• Utilities
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