Posted by PBMares, LLP.
Prior to the most recent legislation, borrowers applying for PPP forgiveness had to reduce their forgiveness amounts by any Economic Injury Disaster Loan (EIDL) grants received (which were up to $10,000). The Economic Aid Act, which became law on December 27, 2020, changed that – making PPP loans fully forgivable regardless of EIDL grants received.
Now, the SBA has issued guidance and new forgiveness forms removing the need for an EIDL reduction.
For those who already filed their PPP forgiveness applications and included a reduction for an EIDL grant, the SBA will automatically remit a reconciliation payment to the PPP lender for the previously-deducted EIDL Advance amount plus interest through the remittance date. Neither the borrower nor your lender needs to take any action; this will be an automatic process.
Questions? Contact your PBMares Tax Advisor today!
Be sure to consult with your financial or tax advisor on this topic as individual situations may vary. The information contained in this article or webinar, and any related materials, are for informational purposes only, and cannot be relied upon for legal, financial, tax, accounting, or other professional services advice. The content is provided on an “as is” basis and PBMares makes no representations or warranties about the accuracy or sustainability of any information for your purposes. For any specific questions you may have, please contact us.
This content is accurate at the time of publication. Always ensure you are reviewing the most recent information available. Contact your tax or financial advisor if you need clarification.
Contact Us
About the Author
PBMares, LLP
