By Bill Kinnard, President & CEO
One of the issues of the PPP program that many found surprising is that if you applied for an EILD grant and now applied for forgiveness for you PPP loan, they deducted the amount of the grant from the forgiven amount. The EIDL grant is the $10,000 grant that you could recieve by applying for an Economic Injury Disaster Relief loan. They said that even if you didn’t take the loan, you could keep the grant, so many contractors applied. Then when they applied for forgiveness, the SBA deducted the grant amount from the forgiven PPP funds resulting in the the same result as having to pay it back.
With the bill signed by President Trump on December 27th, this has changed. Going forward, they will not deduct this grant amount from your PPP loan amount. If you have already submitted your application for PPP, they will ignore any amount listed for the grant. Also, if you have not yet submitted for forgiveness, you no longer have to list the grant amount of the PPP Forgiveness Application.
Lastly, if your PPP loan has already been forgiven and the grant amount was deducted from the forgiven amount, the SBA will automatically issue a second payment to your lender for the remaining balance.
To listen to my live stream with the details, check it out here.