CARES Act Loans – Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) 

CARES Act Loans – Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) 

As we track the availability of the various types of relief made available under the Coronavirus Aid, Relief and Economic Security (CARES) Act, there are two loans in particular that warrant all of our customers and members’ consideration.  Below is a quick summary of a breakdown of the eligibility requirements, uses of proceeds, loan limits and related terms for each loan.

Economic Injury Disaster Loan (EIDL) Max Loan $2M

  1. Eligibility – companies with 500 or less employees (includes cooperatives, ESOPs, non-profits, sole proprietors, and independent contractors). Consult with SBA guidelines for additional eligibility requirements.
  2. Use of Proceeds – pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the impact of COVID-19
  3. Rate – 3.75% for-profit companies/individuals, 2.75% for a non-profit
  4. Term – up to 30 years, case by case basis
  5. Deferment – payments on loan are deferred for 1 year
  6. Loan Security – Loans over $200,000 must be accompanied by a personal guarantee.  On all loans over $25,000, a UCC lien in favor of the SBA will be placed on business assets and potential real estate

Paycheck Protection Program (PPP)Max Loan $10M (or 2.5X Average monthly payroll, whichever is less)

– (SBA approved lenders will be making loans and related loan application materials available as soon as possible, go to for a list of all approved SBA lenders)
  1. Eligibility – Companies with fewer than 500 employees (must have been in business as of Feb 15, 2020)(includes sole proprietors and independent contractors). Consult SBA guidelines as provided to you by the approved SBA lender for additional eligibility requirements.

*Restaurant operators who might otherwise not meet the under 500 employee and other affiliation tests under the SBA loan guidelines may nonetheless qualify for the PPP loans under special exceptions for eligibility that have been created.  It is important to direct all eligibility guideless and related questions to an SBA approved lender extending the PPP loan.

  1. Use of Proceeds – payroll, group health benefits, salary and employee commissions, interest on mortgages, rent, utilities and interests on loans incurred prior to February 15, 2020
  2. Rate – no more than 4%
  3. Term – 10 years after forgiveness (i.e., any remaining loan portion after forgiveness is applied will receive up to a 10-year repayment term).  Standards related to the forgiveness of the loans may be found on a prior update we’ve sent
  4. Deferment – payments on loan deferred to up to 1 year
  5. Loan security – there is no personal guaranty or other security required for PPP loan.


Unfortunately, SBA approved lenders are not yet accepting applications for the PPP loans, although based upon our discussions with several SBA approved lenders, we expect those application materials to be available in the next 7 to 10 days.  Some SBA lenders are proactively contacting those customers who wish to be alerted when PPP Loan documents are available. One such example can be found through Synovus’ SBA Lending Division for those customers interested ( and here (
If you have questions regarding the EIDL or PPP loans, please do not hesitate to contact the Operator Support Center 

DISCLAIMER: Dining Alliance and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.