Last updated APRIL 15, 2020
Einar Vollset, co-founder of TinySeed, waded through hundreds of pages of U.S. government documents to compile this overview. Einar is not a lawyer and this should not be considered legal advice. Be sure to do your own research to evaluate these programs as they relate to your specific situation.
A confusing soup of programs is available. Below is a summary of all the programs that have passed, which law passed them, which entity administers the program, and our subjective rating of applicability to the MicroConf community. We have included acronyms if they are widely used.
There are currently 5 main programs available:
These are programs only for US businesses, we would welcome (and will link to) similar summaries of international, US state or private programs applicable to the startup community.
This is a living document and we will update it as new information becomes available.
Paycheck Protection Program
“Forgivable loans up to 2.5x monthly payroll”
Section 1102 of the CARES Act (H.R. 748, “3rd Relief Bill”) signed March 27th
Administered by the SBA
Rating(A+): Easy to get, easy to forgive.
Click here for detailed overview
Refundable Employee Retention Credit
“Up to $5000/employee/month refundable tax credit for wages paid by businesses with significant gross receipt declined due to Covid-19”
Section 2301 of the CARES Act (H.R. 748, “3rd Relief Bill”) signed March 27th
Administered by the IRS
Rating(C+): Cannot be combined with PPP! Only 50% of wages.
Economic Injury Disaster Loan (EIDL)
“Up to $2m (<4%, 30yr) loan to alleviate specific economic injury. Not forgivable”
Part of the FFCRA (H.R. 6201, “2nd Relief Bill) sign March 18th
Administered by the SBA
Rating(B+): must document specific injury. Not forgivable (though see Emergency EIDL Grants below)
Click here for detailed overview
Emergency EIDL Grants
“Up to $10k paid out in < 3 days”
Section 1110 of the CARES Act (H.R. 748, “3rd Relief Bill”) signed March 27th
Administered by the SBA
Rating (A): easy to get, gets deducted from PPP, forgiven if denied EIDL.
EIDL Grants are a part of the EIDL process
Emergency Family and Medical Leave Expansion Act
“Government requires you to provide 2 week sick leave and 10 week family leave for employees impacted by Covid-19. Government will cover up $500/day sick leave, and up to $200/day family leave”
Division C of the FFCRA (H.R. 6201, “2nd Relief Bill) signed March 18th
Administered by the IRS
Rating(B+): Great if e.g. an employee can’t work because school is out
Click here for additional resources.
We will update this page as new information becomes available