EIDL and PPP loans/grants

I first applied for EIDL with SBA and was given a case number and asked if I needed emergency money to be directly put in my account–answered yes and gave bank account number.
Then applied for PPP with Chase in which I was asked if I had received EIDL, which I answered “No” since I hadn’t heard anything from SBA. Also got a case number.
Got an email from SBA offering emergency funds at $1K per January’s FTE-- accepted offer of $5K which was transferred to bank after several days-- no notice. Used it on outstanding vaccine bills and various other non-payroll/rent items.
Got the full 2.5 PPP in second round of money at the beginning of May, based on application without any further closing etc. Can easily use 75% on payroll and 25% on rent although 2 staff are still on UE, and I hired 2 people (family members) to do marketing and general IT/clerical/maintenance work for office instead of the NP and MA who we really don’t need while we are at about 20% activity. Plan is to rehire MA and stop IT/clerical when practice re-establishes itself. NP is up in the air.
Now SBA has contacted us to offer a loan up to $150K. Since I doubt our NYC will be back in full swing when the PPP runs out, can/should I be accepting the loan? Does this jeopardize the forgiveness aspect of the PPP in terms of feeling in dire need of the cash infusion attestation?
Thanks for any direction with respect to the latest loan.

The EIDL Loan is a seperate loan with generous terms (30 years to pay at 3.25%)…it’s not a bad idea to apply for the loan. Be careful as the maximum allowed on the loan is $150k. However, not everyone is eligible for the full $150k. When you apply for the EIDL loan, they ask you to tell them the total revenue and expenses for 2019 and then they calculate a loan amount based on the difference between the two numbers on a monthly calculation that didn’t make sense to me when I spoke to the SBA processor. Very few practices have shared with me they recevied the full $150k if they pass all income to the owners as wages or show a minimal net income on P&L report to avoid corprote tax rates…

Thank you!

I believe the interest is 3.75%.
I just recently received the same email.
But have some questions about how the loan can be used.
Can it be used for payroll after the PPP is gone?
Also, is the loan personally guaranteed?

EIDL loans personal guarantees are not explicit but maybe implied based on the practice’s corporate structure (LLC vs Corp vs Sole Proprietor)…

Use of funds is somewhat vague- providing wide latitude. It is not limited to payroll…just make sure it’s used for business purposes and you should be ok (barring any future change in rules)…

Is there any prepayment penalty for the EIDL loan? I have received PPP loan but am worried if another surge hits and we have to slow way down again, I may need another back up source of cash. I just recently got an email to set up my EIDL loan account info so I am pursuing it. But I want to make sure there is no prepayment penalty, otherwise I will be paying $250K plus for a $150K loan.

There are no prepayment penalties for the EIDL loan (or for the PPP, for that matter.)

Does anyone know if there’s a way to investigate EIDL applications? I filled one out promptly online. Got a verification, but never any follow-up info. Thanks!

I filed my EIDL application at the beginning of April. A few weeks ago, I got an email telling me they were processing the applications in the order received (soon after I the EIDL advance was plucked into my bank account). A few days ago, I got an email from SBA asking me to set up my SBA account and to verify my personal information and pick my requested loan amount. That process took a minute, and now I am waiting for a request for further information, but at least I have somewhere to log into now to check on things.

Prior to being able to log in, the only way to get an update was to call the SBA, which was a futile endeavor. But it appears that if the advance was put into your account, then they are processing things, but you have to be patient.

Thanks, Seth.


An update on my EIDL journey. I received notification yesterday that I had been approved for the full amount. Just have to complete the closing paperwork. No additional information has been requested.

So it was about 10 days from notification to open my SBA portal account to loan approval.

This will be a very nice cushion as business continues to recover and in advance of possible setbacks due to currently rapidly rising COVID-19 case and hospitalization rates in my area.

Hope you have heard something or hear something soon.

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It took great effort, but managed to remain afloat May and June with PPP loan; today was approved the EIDL. We have continued to see patients for WCC and vaccines through this time, telemedicine mainly for sick. Patients eager to come back, we are encouraging the visits by following strict protocols. I think my practice will be ok. We are def preparing for second wave in the fall by calling patients back for WCC and Vaccs, school forms, etc. We are being frugal, trimming out excess spending, monitoring every penny. Saving money as much as possible for the very likely covid.v2 in the fall. I am so grateful to Chip and Paulie. Honestly, you guys paved the way, the webinars and the forum in general literally helped save my practice. Thank you, many blessings to you guys :heart:


We have been approved for the 150K EIDL amount. The terms mention that the practice assets will be collateral and if we apply for any additional loans we would first need to get permission from the SBA. I think it is quite likely that we might need additional loans in the coming months; is anyone familiar with this clause and could it interfere with our ability to secure a loan later? There is also some confusing language about limitations on the distribution of assets - we plan to use ours for purchase of supplies (mostly vaccines), rent, etc; should that be OK?

Thanks! I finally did get that same e-mail, was offered the loan amt I wanted. Now wondering if I should lower my request amount so that they don’t have collateral on me! I wonder if anyone has experience with that issue.


Ultimately, this is a question for your lawyer and accountant. However, the way I see it is that whenever you take out a loan, the lender is going to be asking for some sort of collateral. Reducing the loan amount to $25K to avoid collateral wouldn’t be as helpful to me, as that amount would be used up pretty quickly and I’d quickly be back in the situation of needing more help.

The terms of this loan are hard to beat - 3.75% interest over 30 years, meaning that it is a very reasonable payback amount and there are no penalties for pre-payment, so if things go well, you can get out from under the loan pretty easily.

But right now, cash is king. There is so much uncertainty as to what the next few months will bring. I would rather have these funds available as a security blanket than have to turn around in a month or so and look for other sources of funds, which are likely to come with a much higher interest rate and less favorable terms.