COVID-19 Business Disaster Recovery Assistance

The Coronavirus Aid, Relief and Economic Security Act,
CARES Act for Small Businesses

Passed by Congress and signed by the President, the Coronavirus Aid, Relief, and Economic Security (CARES) Act tasks the U.S. Small Business Administration (SBA) with overseeing the distribution of millions of dollars in loans and grants to help small businesses survive the COVID-19 pandemic. It also provides additional funding for SBA’s resource partners to provide advice and training to help small businesses respond to the unprecedented challenges in communities throughout the country.

A Comparison of Small Business Disaster Loans
Available Through the CARES Act




Paycheck Protection Program

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Economic Injury Disaster Loan
and Advance Grant



Short-term, potentially forgivable loans to eligible small businesses that retain employees, maintain payroll, and use for other allowable operating expenses.

PPP loans are administered and approved through SBA-certified lending institutions.


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Long-term, low-interest working capital disaster loans for small businesses that suffered substantial economic injury due to COVID-19.

EIDLs are administered and approved directly by the SBA.



Amount: Lesser of 2.5x average monthly payroll costs, or $10 million
Interest and Terms: 1% for a term of two years for any amount not forgiven
Collateral: None
Personal Guarantee: None


Amount: Up to $2 million
Interest and Terms: 3.75% for a term up to 30 years
Collateral: Loans of more than $25,000
Personal Guarantee: Loans of more than $200,000


Private small businesses that have less than the greater of—

  • 500 or fewer employees whose principal place of residence is in the United States, or
  • SBA employee or revenue-based size standards for the industry that the business operates.

Accommodation and Food Service (NAICS 72) businesses based on per location.

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Private small businesses that meet SBA employee or revenue-based size standards for the industry that the business operates.


Eligible—Limited to the amount spent on payroll costs and allowable operating expenses during the eight-week period beginning on the date of the origination of the loan.

At a minimum, 75% must be expended on payroll costs to be forgiven.


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The EIDL loan is not forgivable, however, you may apply for an EIDL loan advance, which you do not have to pay back. Applicants may request at the time of application a loan advance of up to $10,000 ($1,000 per employee). Approved borrowers will have the advance deducted from the total principal and forgiven for applicants not approved for an EIDL.


Proceeds may be used to pay payroll costs, mortgage interest, rent, utilities, and interest on pre-existing loans.


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Proceeds may be used to pay fixed debts, payroll, accounts payable, rent, utilities, and other bills that cannot be paid because of the disaster’s impact.
  June 30th, 2020


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December 31st, 2020  


Contact your local bank, credit union, or other SBA-certified lender to apply or for more information. Applicants can download a copy of the PPP borrower application form to see the information that will be requested when you apply with a lender.

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Apply online directly with the U.S. SBA at

Note: You can apply for both PPP and EIDL—you just can’t use the funds for the same purpose.