cancel
Showing results for 
Search instead for 
Did you mean: 
eciarrachi
Level 1

EIDL and PPP

I have a question regarding the PPP loan and the EIDL loan.  We received the PPP loan and were then approved for an EIDL loan recently.  We are cautious to accept the EIDL loan funds as we heard they may affect loan forgiveness for the PPP loan.  Does anyone know if this is the case?  Or can anyone provide further detail?

 

Thank you!

3 Comments
Anna S
QuickBooks Team

EIDL and PPP

Hi there, @eciarrachi.

 

I'm happy to provide further details about how the EIDL effects PPP loan forgiveness.

 

The amount you received through the Economic Injury Disaster Loan program will be deducted from your forgivable amount of the Paycheck Protection Program loan. For example, if you received a $10,000 EIDL advance and a $60,000 PPP loan, the maximum amount that you would be eligible for forgiveness is $50,000. 

 

You'll want to use the Forgiveness Estimator to see how your EIDL advance affects your PPP loan amount. You can also check out this article for more information: How does an EIDL advance affect my PPP loan?.

 

Feel free to drop a line below if you have any other questions or concerns. I'm always here to help.

eciarrachi
Level 1

EIDL and PPP

Thanks Anna for the follow-up - 

 

So just to put in perspective from what you are telling me:

 

Hypothetically lets say we received $200,000 for the PPP loan.  We then receive a $10,000 advance for EIDL.  After that we receive an additional $150,000 for the rest of the EIDL loan.  Based on those numbers only $40,000 would be available for loan forgiveness for the PPP loan?

 

Thanks again for your help! 

Nick_M
QuickBooks Team

EIDL and PPP

Hello, eciarrachi. 

 

You are correct, as Anna mentioned, the amount you received through the Economic Injury Disaster Loan program will be deducted from the amount of the Paycheck Protection Program loan. I also recommend reviewing the article listed above about how the EIDL advance affects your PPP loan

 

If you have any further questions or concerns, feel free to post them down below. 

 

Thanks for your time and have a nice afternoon. 

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us