The Paycheck Protection Program can be a lifeline for businesses that qualify, but it’s not the only program available for business owners struggling during the coronavirus pandemic.
Those who don’t meet PPP requirements may be eligible for grants and other financing, including state and local grants and other loan programs supported by the Small Business Administration.
Other SBA loans and grants
The Small Business Administration has several lending programs available to struggling businesses. Loans backed by the SBA tend to have lower interest rates and more favorable terms than loans from private lenders, but borrowers still need to meet minimum credit standards and may need to put down collateral.
Economic Injury Disaster Loans
Historically used for businesses impacted by a natural disaster, these low-interest loans are now available to businesses with up to 500 employees that can show a financial loss due to the coronavirus pandemic.
Eligible businesses can receive up to six months of working capital, up to $150,000. Collateral is required in excess of $25,000. Money borrowed via an EIDL can be used to pay operating expenses, including fixed debt payments. Unlike PPP loans, EIDLs are not eligible for loan forgiveness but payments are deferred for one year.