Quick Base, Vista Equity Partners, and Kirkland & Ellis LLP have teamed up to create the Small Business Loan Accelerator.
This free tool can help your small business easily evaluate eligibility for financial assistance and create an application for a Paycheck Protection Program (PPP) loan. After answering a series of questions, the tool will generate the applications necessary for you to provide to your preferred lender. This video from Quick Base walks through the simple process:
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The Small Business Loan Accelerator wizard also provides information about other types of SBA assistance. For example, Economic Injury Disaster Loans (EIDL), an existing loan type which was expanded under the CARES ACT.
The information below provides a quick comparison between PPP loans and EIDL:
Paycheck Protection Program:
- PPP loans are a new loan type defined in the CARES Act.
- Eligible businesses can borrow as much as 250 percent of their average monthly payroll expenses (up to a total of $10 million) at a 4% fixed rate and a 10-year term.
- Recipients can request forgiveness for the principal portion of Paycheck Protection Program Loans if funds are used for: payroll costs; mortgage or rent payments, and utilities.
- Payment is deferred for 6 to 12 months.
Economic Injury Disaster Loans:
- EIDL, an existing loan type, which has been expanded for relief.
- Eligible businesses can borrow up to $2,000,000 at a 3.75% interest rate with a 30-year term. EIDL now includes an emergency advance of up to $10,000 to small businesses harmed by the global health crisis.
- The emergency advance portion of the loan will be forgiven if funds are used for: Payroll costs; Mortgage or rent payments; increased supply chain costs, and utilities
- Payment is deferred for 6 to 12 months.
