Here is a brief comparison of each loan type: Eligibility criteria is similar for both PPP and EIDL loans (though not identical). A business may apply for both loans but cannot use them for the same purposes. Businesses are permitted to obtain both a PPP Loan and an Economic Injury Disaster Loan (EIDL).The loan must be repaid within two years from the date of distribution. Loan payments will be deferred for six months, though interest will continue to accrue over this period. If a business uses less than 75% for payroll, the amount of loan forgiveness will be reduced accordingly, and any amounts that are not forgiven will convert to a loan with a 1% interest rate. PPP loans will be fully forgiven if at least 75% of the loan proceeds are used to cover payroll costs. Loan proceeds may not be used for other purposes. Loan proceeds can be used to cover payroll, mortgage interest, rent and utilities. Businesses and self-employed individuals can obtain loans of up to 2.5x the average of their monthly payroll expenses, up to a cap of $10 million.
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