SBA Provides Updates on PPP and EIDL
·
Note:
Question #40 explains how a borrower can correctly document when an employee who has been laid off declines to return to work, so it does not negatively impact the borrower’s eligibility for forgiveness.
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There have been no changes or updates to the 8-week forgiveness period; the eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower.
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The EIDL Advance has no reporting requirements and does not have to be repaid.
·
Note:
If a business had applied for and received both the EIDL Advance and PPP, the EIDL Advance funds will be deduced from the total amount of PPP forgiveness.
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EIDL Loan funds may only be used for working capital expenses; business expansion or acquiring fixed assets are not eligible.
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For businesses that applied for and received a PPP loan, but later self-determined that they were ineligible, the SBA has issued guidance on the “safe-harbor” provision which allows businesses to repay/return the funding without penalty. More info can be found in Question #31, #43, #45, and #46 of the PPP FAQ sheet
here
.
For more information on the Paycheck Protection Program, click
here
.
To find an SBA approved local lender, click
here
.
For more information on the EIDL, or to apply, click
here
.
At this time, the SBA is
only
accepting new EIDL applications from Agricultural businesses.