Thinking of applying for a PPP or an EIDL loan? Check out these guides to help you understand some of your options.

A guide for PPP First Draw or Second Draw Applicants and EIDL options

On December 27th, 2020 the President signed the Covid Relief Bill (Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act). The Act comes with a lot of relief for individuals and businesses.

You probably have read and heard about all the different loan programs, mainly the PPP loan and the EIDL loan. SynkBooks as a company and along with other tax professionals has been in the weeds trying our best to help our clients and understand as much as we can about these programs.  There are many different types of loans, but we have been focusing on helping our bookkeeping clients with PPP and EIDL loans.


What is the difference?


What is a PPP loan?


(from the SBA website)

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.

  • PPP loans have an interest rate of 1%.
  • Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
  • No collateral or personal guarantees are required.
  • Neither the government nor lenders will charge small businesses any fees.


What is an EIDL loan?


(from the SBA website)


To meet financial obligations and operating expenses that could have been met had the disaster not occurred


  • 3.75% for businesses (fixed)
  • 2.75% for nonprofits (fixed)
  • 30 years
  • No pre-payment penalty or fees


Working capital & normal operating expenses

Example: continuation of health care benefits, rent, utilities, fixed debt payments.


  • Required for loans over $25,000
  • SBA uses a general security agreement (UCC) designating business assets as collateral, e.g. machinery and equipment, furniture and fixtures, etc.


  • NO – EIDL Loan
  • YES – EIDL Advance*

*Advance funds have been fully allocated and are not currently available


30 years


The Forms below are made for our SynkBooks clients, but anyone is free to use them. We will respond to everyone (yes everyone) with the additional information, however we will prioritize our SynkBooks clients, then everyone else. The goal of the form is to guide you, then send you the appropriate information based on your Form selections.


You may apply for one or both of the loans:


Interested in the PPP Form click here


Interested in the EIDL Form click here