So we recieved both our PPP loan and the EIDL grant, has anything come out for sure about whether or not they are separate or have to be factored in to eachother? Thanks
I am not 100% on this but I believe the EIDL grant amount reduces the forgivable amount of the PPP loan. You may already know that part.
EIDL and PPP are separate program with one caveat: the advance payment of up to $10,000 from the EIDL is factored in the forgiveness of the PPP. This gets even murkier as so few people have been able to get the EIDL loan squared away. Not much certainty on this issue as of today.
So if I interpret that correctly, if we recieved an $8000 grant, we take the PPP forgiven amount we calculate, and subtract the $8000, and then the leftover, $8000+ whatever wasn’t going to be forgiven for PPP and that amount we can keep as a loan that will be deferred for 6-12mths? Thanks!
So how do you think that will work as far as the $10000? Does that have to be spent on something other than PPP money? Vaccines, testing , or supplies and not Payroll, and utilities? For instance if we accepted the PPP loan of $100000. I spend $25K on utilities, rent, and Insurance. the other $75k on payroll. Where do I take the $10K EIDL out of?
Maybe It means I can Use $10k on vaccines or testing. So that would be $100k minus the $10k=$90k.
Therefore 25% of $90k is $22.5k. This amount used on Utilities, rent and insurance. $67.5k on payroll.
Hopefully my example makes sense. It would seem this case helps me maximize the amount used on expenses rather than everything to payroll.
If you have an EIDL grant of $10k, this reduces your PPP forgiveness by $10k. It doesn’t change the proportion of how you spend your PPP money. You still would spend $75k on payroll and $25k on rent/utilities (not insurance.) But instead of having to pay back nothing, you have to pay back $10k.
Can you give us the reference for that? Thanks