A side-by-side comparison of SBA loan programs

Federal Loan programs available during the COVID-19 pandemic

Thank you to the Colorado Department of Labor and Employment (CDLE) and the Northwest Colorado Workforce Center for the information below.

Colorado Workforce Center support is available locally through the Glenwood Springs office:
(970) 945-8638 | cdle_glenwood_springs_wfc@state.co.us

The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes a loan program to keep small businesses afloat during mandated COVID-19-related closures. The Paycheck Protection Program (PPP) authorizes federally guaranteed loans to qualifying small businesses.

Businesses CAN get both EIDL and PPP loans at the same time, but cannot use the funds for the same expenses/purposes. Businesses can apply for the EIDL loan now and the PPP loan when it becomes available. EIDL loans can be refinanced into a PPP loan. Loans are limited to one per Taxpayer Identification Number.

SBA loan program comparison

Helpful Links
Loan program Q&A [PDF] SBA Economic Injury Disaster Loan application

Which is right for me?
  • Businesses needing an immediate injection of cash
  • Businesses that need funds not tied to retaining employees
  • Businesses who need funds that can be spent over a term longer than eight weeks
  • Businesses that have retained employees
  • Businesses that have laid off employees, but could bring some or all back before June 30, 2020, if they had the cash to do so.
The WOW factor

Include a $10,000 grant per applicant.

Can be converted to a grant if used for allowed expenses.
Loan amount
Up to $2 million.
Applicants may request an advance of up to $10,000, which will be distributed within 3 days.
Up to $10 million.
Calculated by multiplying 2.5 by average monthly payroll costs.
Uses Financial obligations and operating expenses that could have been met had the disaster not occurred including payroll, utilities, accounts payable and fixed debts including those incurred before covered period.
Payroll, group healthcare benefits, insurance premiums, rent, utilities, interest on mortgage or interest on any other debt incurred prior to Feb. 15.
Loan forgiveness for qualified expenses during an 8-week period beginning on loan origination date.
Interest rate % 
3.75% for businesses
2.75% for non-profits
4% maximum
Term Up to 30 years 10 years

First payment due One year after the loan origination date (interest is accrued during the deferment) At least six months after the loan origination date (interest is accrued during the deferment)
Collateral The SBA will place a UCC lien against the assets of the business None
Loan forgiveness No. Yes on first $10,000. Yes, based on maintaining average number of FTE
Need to file 2019 taxes? No. Businesses will be asked to provide the SBA access to historical tax returns Will depend on lender
How long before approval? 2-3 weeks plus an additional 5 days for funding Will depend on lender
Application open? Yes. There is no obligation to accept the loan if you qualify. 
No. Banks will need at least two weeks to prepare their loan application process.
Who is the lender? The Small Business Administration (SBA). A bank that handles SBA 7(a) Loans, underwritten by the SBA
Who can apply? Those in business before Jan. 31, 2020, have fewer than 500 employees, sole proprietorships, independent contractors and non-profits Businesses and entities must have been in operation on Feb. 15, 2020 and have 500 or fewer employees. Sole-proprietors, contractors and non-profits
Resources How to Apply for an SBA Disaster Relief Loan – U.S. Chamber of Commerce

How to Get a Coronavirus Emergency Paycheck Protection Loan – – U.S. Chamber of Commerce

Paycheck Protection Program Loan Guide and Checklist [PDF] – U.S. Chamber of Commerce


Small Business Debt Relief Program

This program provides immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law.The Federal Government is working diligently on developing the application process for these loans and we will let individuals know that information when it is released and applications are open.

Other aid 

  • A refundable payroll tax credit for 50% of wages paid by employers to employees during the COVID-19 crisis.
  • Temporary increases to the amount of interest expense businesses are allowed to deduct on their tax returns to 50% of taxable income for 2019 and 2020.
  • Allowances to employers and self-employed individuals to defer payments of the employer share of the Social Security tax.