The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP). If your business is eligible,you can get both of these loans and use the funds at the same time,as long as you don鈥檛 use them for the same purpose.
People also ask
How much can you borrow from the EIDL and PPP?
The amount you can borrow depends on your payroll expenses. You can apply for and receive loans from both the EIDL and PPP programs as long as you meet the qualifications for both loans and use the loan proceeds differently. For example, you can use the PPP for payroll and the EIDL to cover other operational expenses.
What is the difference between EIDL and PPP?
EIDL has a higher interest rate than PPP (3.75% vs. 1%). You cannot use an EIDL for the same purpose as a PPP loan (payroll in the two months after receiving the loan). However, you can use the EIDL for payroll once you鈥檝e exhausted the PPP after those two months have passed.
Can I use my EIDL for payroll?
However, you can use the EIDL for payroll once you鈥檝e exhausted the PPP after those two months have passed. If your business receives both loans or refinances an EIDL into a PPP loan, the EIDL grant amount will be subtracted from the amount forgiven in the PPP loan.
How do PPP loans and EIDL advances affect loan forgiveness?
If you receive an EIDL advance and a PPP loan, proceeds from the advance will be deducted from the loan forgiveness amount. As an example, let鈥檚 say your business gets a $25,000 PPP loan (possible grant) and then gets a $5,000 EIDL advance. The amount of the advance is subtracted from thePPPloan.