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Tax and Accounting Blog: Finding the Signal in the Noise

COVID 19 Related: Emergency Injury Disaster Loan (EIDL)

Posted by Ruchi Attal Posted on Apr 03 2020

 

Regarding the EIDL (Economic Injury Disaster Loan)

Loans are available for reasons other than payroll costs .

This allows for a emergency grants in the form of an immediate advance of up to $10K

Advance can reduce the amount forgiven by $10K if you also apply for PPP.

Loan is payable over 10 years at 3.75% interest rate.   

 

Resources: EIDL Application

Resources: Program Details

COVID-19 Related: Payroll Protection Program

Posted by Ruchi Attal Posted on Apr 02 2020

Regarding the PPP (Paycheck Protection Program)

Applications available starting on 4/3 for small businesses

Applications available starting on 4/10 for independent contractors (self-employed individual) [Note: you will need to work with an SBA lender]

You must have less than 500 employees and loans are calculated based on average monthly payroll x 2.5

Employee wages are capped at $100K for purposes of the loan calculation

Loan amounts used for payroll, utilities, mortgage interest and rent are forgiven

If there is a balance on the loan after the amount forgiven, the balance is payable over 2 years at 0.5% interest rate.

Resources: PPP Fact Sheet

Resources: Application Form

All thoughts and opinions shared here are for informational purposes and should not be taken as personalized tax or accounting advice. Every situation and circumstance should be analyzed independently by you and your CPA.