What is the real timeline of the EIDL likely to be? Has anyone actually received any funds yet?
I just got an email from one practice who has “secured their SBA loan” - I have already asked for more details!
Received an email today from SBA.
On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.
You may be eligible for another loan program, the Paycheck Protection Program , which is available through participating lenders. Below is a comparison of the two loan programs:
Under the PPP column, next to purpose, it states that amount of any EIDL advance is not forgivable. Does that mean that if you have both a PPP and an EIDL loan, the first 10K of the EIDL is not forgiven? The only reason I can see is that if you are using PPP for payroll, you would need to use EIDL for another purpose (not emergency payroll). Can someone please clarify?
From what I understand the EIDL advance 10K can be forgiven. The EIDL loan if you choose to accept has to be used for paying expenses. Vaccines, Office supplies, Testing equipment.etc…
To answer your question specifically when you get the loan for the PPP the amount forgiven would not combine the EIDL 10K advance and the total loan for the PPP.
To be exact: if you received the EIDL advance $10K and you received PPP loan $100,000 then the maximum amount that can be forgiven in total is $100,000. Not $110,000.
I hope that helps. This is not meant to be exact figures and is just an example of the way it was explained to me by my CPA and Bank President. If someone know any exception then please post here.