If you are a small business, non-profit, or independent contractor that is suffering from a loss of income due to the economic impact of COVID-19, you may be aware that the government is offering several loan programs to assist. This article will help you quickly understand the primary differences between the three main types of SBA Disaster Loan programs and provides direct links for you to apply.

You should consider applying for the forgivable loans first since you will not need to repay these loans if used according to the specified guidelines. Keep in mind that funds are distributed on a first come first serve basis, so don’t delay!


1. Economic Injury Disaster Loan Advance (Up to 10K, Forgivable)

  • EIDL Loan Description: The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue.
  • Who is eligible? Small business owners, independent contractors and non-profit organizations in the US.
  • What is the loan amount? Advance loan up to $10,000.00.
  • Is the EIDL Loan forgivable? Yes, it does not need to be repaid.
  • How do I apply? To apply for a COVID-19 Economic Injury Disaster Loan Advance, click here.


2. Paycheck Protection Program (Up to Monthly Payroll x 2.5, Forgivable)

  • PPP Loan Description: 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.
  • Who is eligible? Small businesses, independent contractors and non-profits in the US are eligible.
  • What is the Loan Amount? Monthly payroll x 2.5.
  • Is the PPP Loan forgivable? Yes, the loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities) at least 75% of the forgiven amount must have been used for payroll).
  • How do I apply? You must apply through an SBA approved lender. If your business lender is not an SBA approved lender, please click here for loan details and to find an approved lender.


3. Local State Assistance (Short Term No Interest Loans, Not Forgivable)

Please check with your local state program for details. Below is information for The Florida Small Business Emergency Bridge Loan Program.

  • The Florida Small Business Emergency Bridge Loan Program Description: These short-term, interest-free working capital loans are intended to “bridge the gap” between the time a major catastrophe hits.
  • Who is eligible? Qualified small business applicants must be an employer business with 2 to 100 employees.
  • What is the Loan Amount? Up to $50,000 per eligible small business. Loans of up to $100,000 may be made in special cases as warranted by the need of the eligible small business.
  • Is the Florida Small Business Emergency Bridge Loan forgivable? No. This loan is not forgivable and will be interest-free for the loan term (1 year). The Interest rate will be 12% per annum on the unpaid balance thereafter, until the loan balance is repaid in full. Loan default is subject to a normal commercial collection process.
  • How do I apply?  Click here to apply onlineFor more information, click here.


As we all navigate the difficult journey ahead of us, we will need to come together and help each other succeed.  Please feel free to reach out to Sovereign if we can help answer any questions regarding these loans or be of service in any way.


Disclaimer: The information presented was extracted from the official SBA Loan websites linked to this article. As the government is continually implementing updates, please check the websites periodically for the latest information. Please also consult with your CPA or attorney on how these loans impact your specific business and organization.

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