# New FAQ from SBA regarding PPP loan forgiveness



## _Tron_ (Feb 9, 2020)

For those relatively few of us that applied for and received a Paycheck Protection Program (PPP) loan, it appears some banks are starting to accept applications for forgiveness of those loans (if more than 60% of the funds were used for payroll then the loan is potentially forgivable).

On August 11th the SBA published an updated FAQ regarding the PPP. One surprise being reported is that any EIDL grant an entity received would reduce the amount of PPP forgiveness by the same amount. So as I perceive the below statement, if an IC received a $1,000 EIDL grant (not the loan portion, the advance portion that became a grant), and the IC also received, say, a $5,000 PPP loan, then the most that could be forgiven on the PPP loan would be $4,000.

"Economic Injury Disaster Loan (EIDL) FAQs 1.

Question: SBA will deduct the amount of any Economic Injury Disaster Loan (EIDL) advance received by a PPP borrower from the forgiveness amount remitted to the lender. How will a lender know the amount of the EIDL advance that will be automatically deducted by SBA?

Answer: If a borrower received an EIDL advance, SBA is required to reduce the borrower's loan forgiveness amount by the amount of the EIDL advance. SBA will deduct the amount of the EIDL advance from the forgiveness amount remitted by SBA to the lender. The lender will be able to confirm the amount of the EIDL advance that will be automatically deducted by SBA from the forgiveness payment by reviewing the borrower's EIDL advance information in the PPP Forgiveness Platform."


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## oldfart (Dec 22, 2017)

_Tron_ said:


> For those relatively few of us that applied for and received a Paycheck Protection Program (PPP) loan, it appears some banks are starting to accept applications for forgiveness of those loans (if more than 60% of the funds were used for payroll then the loan is potentially forgivable).
> 
> On August 11th the SBA published an updated FAQ regarding the PPP. One surprise being reported is that any EIDL grant an entity received would reduce the amount of PPP forgiveness by the same amount. So as I perceive the below statement, if an IC received a $1,000 EIDL grant (not the loan portion, the advance portion that became a grant), and the IC also received, say, a $5,000 PPP loan, then the most that could be forgiven on the PPP loan would be $4,000.
> 
> ...


.At first I was upset that I didnt get the EIDL grant. I got a loan, but no grant. But once I learned that an EIDL grant would go against PPP loan forgiveness I was happy that I didnt get the grant,


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## SOLA-RAH (Dec 31, 2014)

oldfart said:


> .At first I was upset that I didnt get the EIDL grant. I got a loan, but no grant. But once I learned that an EIDL grant would go against PPP loan forgiveness I was happy that I didnt get the grant,


It's the same difference in the end. Just a little more paperwork.
$5,000 PPP + no EIDL grant=$5,000 forgiven
$5,000 PPP + free $1,000 EIDL grant=$4,000 forgiven


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## oldfart (Dec 22, 2017)

SOLA-RAH said:


> It's the same difference in the end. Just a little more paperwork.
> $5,000 PPP + no EIDL grant=$5,000 forgiven
> $5,000 PPP + free $1,000 EIDL grant=$4,000 forgiven


How's that the same?
$5000 free money vs 
$5000 free money plus a $1000 loan


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## Jakepet (Dec 2, 2020)

Perhaps in the end it`s the same.


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## Daisey77 (Jan 13, 2016)

Didn't the PPP announce anyone who got a loan under 50000 is forgivable no matter what. They don't even have to prove anything. Has anyone heard anything from the SBA regarding the EIDL loan ? Like who to pay how to pay when to pay?


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## Mista T (Aug 16, 2017)

I got an EIDL loan but it wasn't PPP. Hoping the SBA expands the forgiveness!


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## williamsss (Dec 15, 2020)

-o:-o:


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## Jakepet (Dec 2, 2020)

I`m not sure about the SBA, now it is really hard to understand the system. Last month I was going to take a loan, but decided to read more information first. This site helped me understand, what providers are reliable, and which ones you should better avoid.


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## Phoenix123 (Sep 2, 2016)

EIDL Grant no longer part of PPP.... 🤷🏾‍♂️😂


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