Q: “What is the most recent guidance for those who received both a PPP and an EIDL, and what should be considered to maximize forgivability?”
June 17, 2020
Authored by Aria Eckersley
The only portion of the Economic Injury Disaster Loan (EIDL) that is not required to be repaid are funds that were disbursed under the EIDL loan advance feature, that is, under that part of the program under which borrowers apply for an EIDL Grant of up to $10,000 as an advance. If a small business takes an EIDL loan, they can refinance their EIDL loan under the PPP to take advantage of the forgiveness feature under PPP. However, any amount a borrower receives under the EIDL Grant program will be reduced from the amount a borrower is eligible to have forgiven from their PPP loan. Borrowers should seek advice from both a tax and legal perspective to address their specific facts and circumstances.