Should I apply for an EIDL loan or a PPP loan? Here is the difference

Small businesses in central Texas began applying for coronavirus relief loans last Friday. The goal is to provide short term support while retaining employees.

There are many types of loans and for some the process can be overwhelming.

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

“My only responsibility is to protect the financial stability of the company, and I feel like I’ve done a good job for five years now, so I’m not in total panic mode,” she said. told 25 News. “I haven’t talked about this, but I’m definitely in protection mode.”

Gore’s efforts to save his business involved contacting his business coaches, cutting back on all expenses, contacting his accountant, and taking the advice of the regional small business administration consultant.

“At first I was considering the payroll protection program that they launched, but I learned that after speaking with the SBA… this one might take a little longer to get a job. financing, but the economic disaster the loans are actually processed a bit faster, ”she said.

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

At a press conference last week, the president said, “Almost $ 350 billion in loans will be available to small businesses, including sole proprietorships. These loans are repayable up to 100%, as long as employers continue to pay their workers. continue to take care of your workers. ”

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

For Gore, she told 25 News when it came to trying to figure out which loan is best for her business, “You are feeling a bit desperate, but there are options and I think they are trying. to speed up the process of getting funding, so I would say ask for all you can and ask for as much as you can. ”

Something his employees will certainly appreciate once his business is cleared to reopen.

The nearest small business administration office is in Fort Worth. If you have any questions, the number to call is: 817-684-5581.

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