Stimulus - For Businesses & Self-employed

The Small Business Association (SBA) has two government support programs that are still available to individuals and businesses.

The better-known program is the Paycheck Protection Program - a loan designed to provide a direct incentive for businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for up to 24 weeks and the money is used for payroll, rent, mortgage interest, or utilities.

The lesser-known is a long-standing program of the SBA’s - the Economic Injury Disaster Loan Program (EIDL). The EIDL program assists businesses, renters, and homeowners located in regions affected by declared disasters.

A business can apply for both of these loans. Here are key differences -




Maximum loan amount


$10 million


No, but up to $10k advance grant included


Collateral required?

Possibly, depending on loan amount


Credit check required?



Automatic payment deferral

12 months

Until forgiveness application is processed, 10 months after end of covered period otherwise

Where do I apply?

SBA website

Directly from an approved lender

Loan terms

3.75%, up to 30 years (2.75% for non-profits)

1%, 2 years; 5 years for new loans

Approved uses of loan funds

Fixed debts (rent, utilities, etc.)


Accounts payable

Some bills that could have been paid had the disaster not occurred

Payroll expenses


Mortgage interest


You can apply for both of these loans to support your business and good portions (if not all) of these loans are forgivable.  However you can’t use the funds for the same expense - you can use both for rent - but for different months, not the same month’s rent.  


Applying for these loans is not as daunting as it might seem.


For the PPP - The best way is to work directly with the bank where you hold your business banking account or have a current loan. If you work with Paypal, Quicken/Intuit, Square or other online-only entity - many are also participating.       

SBA Participating Lenders                 

PPP application form 

PPP Information sheet 

For the EiDl - you apply directly with the SBA here

Eligible - Independent contractors, Freelancers, Self-Employed, Sole Props, Gig workers as well as non-profits.
PPP Details - 
  • Application deadline August 8

  • Determine your loan amount

  • Interest rate of 1.0% & No Fees

  • Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years. No payments for 6 months.

  • No collateral or personal guarantees required

  • The loan covers expenses dating back to Feb. 15, 2020

  • The loan can be forgiven and essentially turned into a non-taxable grant if businesses maintain their payrolls during the crisis or restore their payrolls afterward.

  • NOTE - if approved, as your loan term ends, you will need to apply for loan forgiveness - you will need to follow certain spending criteria and provide documentation re: payroll, rent/mortgage interest, utilities.

Documents needed to apply - 

  • 2019 Tax Returns and/or 2019 Profit & Loss Statement

  • Last 4 quarters of payroll taxes (IRS From 941)

  • Verification of the number of employees and payroll incurred over the most recent 12-month period.

  • Sole Proprietorships - will need to submit schedules from their tax return showing income & expenses from the sole prop.

  • Independent Contractors - need to submit form1099-MISC.

  • Self-employed individuals - will need to submit payroll tax filings reported to the Internal Revenue Service.

State & Local Economic Assistance Programs

Please check with your local SBA and Chamber of Commerce to determine if additional state or local municipality assistance is available.