On March 27th, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act.  Included in this package is the Paycheck Protection Program (PPP) which will help keep small businesses afloat during mandated COVID-19-related closures.  The program is based on the architecture of the SBA’s existing 7(a) Loan Program and these loans will be made directly by lenders to help those businesses impacted by COVID-19.

At this time, West Town Bank & Trust is no longer accepting any more applications from business’ seeking a PPP loan.  Check out the U.S. Chamber of Commerce’s Checklist & Guide  to learn more about eligibility and frequently asked questions regarding the program.

In addition to the Paycheck Protection Program, the SBA is also offering Economic Injury Disaster Loans (EIDL) to small business owners.  You can apply for this low-interest Federal disaster loan directly through the SBA by Clicking Here.

Outlined below is what we know so far about the key differences between each of these funding relief options:


Paycheck Protection Program (PPP)

Economic Injury Disaster Loan (EIDL)

  • Payroll Expenses
  • Employee Salaries
  • Mortgage Interest
  • Rent and Utilities
  • Interest on Debt (Incurred Prior to 2/15/20)
  • Payroll
  • Fixed Debts
  • Accounts Payable
  • Other Expenses Impacted by COVID-19
Amount *2.5x the Company’s Average Monthly Payroll Up to $2 Million
Rate 0.5% Fixed APR 3.75% APR
Terms No Payments for 6-12 Months (2-Year Term Thereafter) Up to 30 Years
Forgiveness Up to 100% (Pending Approval) 0% Eligible


*Avg. eligible monthly payroll costs over the past 12 months (does not include compensation for employees that earned in excess of $100,000) – MULTIPLIED BY – 2.5 (represents months) – PLUS – the balance of any SBA loan closed between 1/31/2020 and when the loan will be made (if applicable) – OR – $10 million (whichever is less).  If you are a seasonal or new business, you will use different applicable time periods for your calculation.

Note: This information is accurate and updated as of July 30, 2020.  Terms and conditions are subject to change.