COVID-19 Update: FAQ Updates for PPP Economic Injury Disaster Loans

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

BLS will continue to send important updates as information becomes available. Please be sure to visit our COVID-19 Resource Center for additional details and past communications. Reach out to your BLS Team Member or email us at info@belfint.com with any questions.

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Your BLS Team

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