Somebody posted on the webinar last night that based on latest rules and regs, you couldn’t apply for both PPP and EIDL. I’ve seen some passing references to this, but nothing definitive online. When I spoke with the bank processing our PPP application today (hooray for local bank coming through for us!), they said they had heard nothing about that either and thought we could still apply for both.
Can anybody point me to a more definitive answer to this question? I submitted my EIDL application after the new application form came out and have not heard anything back from SBA yet other than the initial acknowledgment with the application number.
All of the followup I’ve seen to that comment last night and elsewhere simply leads back to what we already know: you can’t double-dip. If you use EIDL to cover payroll expenses, you can’t also use the PPP to do that. PPP must be used for payroll protection. You can use EIDL for that purpose but not also PPP. I think what the updated language indicates is that if you receive EIDL funds and use them to pay off payroll expenses, any PPP funds you have must first be used to pay off the EIDL loan.
Thanks Chip. That seems to make much more sense. Of course, that also means that the longer the EIDL takes to process, the more likely some of it will be able to be used for payroll after the 8 weeks of PPP has been used up. But there’s plenty of other expenses it could be out towards in the meantime…
Our accountants were clear thatEIDL monies must be used for non payroll expenses, but were perfect to use for immunization expenses or supplies. We will have to keep very clear accounting about the uses.
We did apply for both on 4/3 and we are being told by the local bank we are dealing with that they are interpreting this as if you applied before the 4/3 PPP application opening or if you had already received the grant and funds from an EIDL loan those would be wrapped up in the PPP loan but not extend the PPP loan amounts and the EIDL would be closed out. They said they are understanding that you cannot apply for both and if you did on or after 4/3 they have no idea what if any delays it may cause.
I have about a 50/50 split on Yes vs No from 3 different CPA firms and 3 different banking institutions. I don’t think anyone really knows yet in our area.