Posted by Michael D. Kelly, CPA
The IRS recently updated their FAQ page related to Economic Impact Payments (EIP), also known as Stimulus Payments. To help simplify the details of what was added to this FAQ page, the BLS Team outlined the highlights below.
PPP EIDL FAQ Highlights:
- If a borrower applied for an Economic Injury Disaster Loan (EIDL) directly from the SBA, they may have received an advance payment of up to $10,000 from the program. If a borrower also applied for a Payroll Protection Program (PPP) Loan, new guidance from the IRS makes it clear that the advanced payment will reduce any PPP amount that normally would have been eligible for forgiveness. Any remaining amount due on the PPP Loan after the reduction must be repaid by the borrower under the initial terms of the PPP Loan.
- SBA FAQ DOCUMENT – Pages 10-11 are related to this topic of EIDL FAQs
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