JohnH Posted June 18, 2020 Report Share Posted June 18, 2020 It's my understanding that the amount of the PPP available for loan forgiveness is automatically reduced by the Advance EIDL For example, an incorporated small business with 6 employees receives a $6,000 Advance EIDL through the original simplified SBA process. They subsequently receive a $50,000 PPP through their bank. The maximum amount subject to loan forgiveness is $44,000 (provided the percentage critera and all other loan forgiveness conditions are met). Is that correct? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted June 18, 2020 Report Share Posted June 18, 2020 This changes almost daily, but following the flow of the forgiveness application, it appears that the EIDL grant gets folded into the PPP forgiveness and turns into a 1% loan for 2 or 5 years, maybe?! Well, "this" doesn't change almost daily, but the PPP and the forgiveness application and the instructions and the interim final regulations and... Quote Link to comment Share on other sites More sharing options...
Lee B Posted June 18, 2020 Report Share Posted June 18, 2020 In the PPP Loan Application, the calculation of the PPP Loan Request is reduced by any EIDL advance so in your example the $44,000 should have been the loan amount, net of the EIDL advance. Quote Link to comment Share on other sites More sharing options...
JohnH Posted June 18, 2020 Author Report Share Posted June 18, 2020 23 minutes ago, cbslee said: In the PPP Loan Application, the calculation of the PPP Loan Request is reduced by any EIDL advance so in your example the $44,000 should have been the loan amount, net of the EIDL advance. That was an assumption I had made at the outset. But each of my clients who received a PPP reported the advance EIDL to the lender but it was not deducted from the PPP. They each received exactly 2.5 times one week's average 2019 qualifying payroll + benefits expenses. (one bank ADDED the advance EIDL to the PPP amount). Each of these banks collected the payroll info from the client, along with the advance EIDL info, and the bank calculated the PPP amount. I told each one that their loan forgiveness would not apply to the advance EIDL, so each would end up with a repayment amount (either a lump sum or a cheap loan). I've been quizzed about this advice, and perhaps the questions are due to clients speaking with people whose advance EIDL was deducted from the PPP. Is it the experience of others on this forum than the advance EIDL was deducted from the PPP before the funds were disbursed? Quote Link to comment Share on other sites More sharing options...
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