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?
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.
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?
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.