Should you apply for an EIDL loan or a PPP loan? Here's the difference

Posted at 7:08 PM, Apr 06, 2020
and last updated 2020-04-13 10:55:48-04

This past Friday, small businesses in Central Texas started applying for coronavirus relief loans. The goal is to provide short-term sustainment, while also keeping employees.

There are several types of loans and for some the process might be overwhelming.

For small business owner Hannah Gore, her daily ritual of opening bills in her Waco salon (On the Avenue Salon and Blowout Bar) doesn't stop, even though her store is completely shutdown.

"My sole responsibility is protecting the financial stability of the company, and I feel like I've done a pretty good job of that for five years now, so I'm not in total freakout mode" she told 25 News. "I haven't been about this, but I definitely am in protection mode."

Gore’s efforts to save her business meant reaching out to her business coaches, cutting back on all expenses, contacting her accountant and taking the advice from the regional Small Business Administration consultant.

"At first I was considering the Payroll Protection Program that they have coming out, but I learned that after talking with the SBA...that one might possibly be taking a little longer to actually get funding to go through, but the Economic Injury Disaster loans are actually being processed a little bit quicker," she said.

The Trump administration is trying to get financial assistance into the hands of small business owners like Gore.

In a press conference last week, the President said, "Nearly $350 billion dollars in loans will be available to small businesses, including sole proprietors. These loans are up to 100% forgivable, as long as employers keep paying their workers. You got to keep taking care of your workers."

Below, are some of the differences between the Paycheck Protection Program and the Economic Injury Disaster Loan:

For Gore, she told 25 News when it comes to trying to figure out which loan is best for her business, "You kind of feel hopeless a little bit, but there are options our there and I think that they're trying to speed up the process of getting financing, so I would say apply for everything you can and apply for as much as you can."

Something her employees will certainly appreciate once her business is allowed to reopen.

The closest Small Business Administration office is in Fort Worth. For questions, the number to call is: 817-684-5581.