Information on Economic Injury Disaster Loan advances is now available on the Paycheck Protection Program Forgiveness Platform for submitted decisions, the SBA said in a letter to lenders with several updates on processing forgiveness payments.
According to the letter, lenders can see if the SBA will deduct an EIDL advance from final forgiveness payments.
While borrowers may receive up to a $10,000 advance payment under the EIDL program, those funds will be deducted from PPP loan forgiveness, leaving some borrowers with a substantial unforgiven balance that must be repaid.
ICBA has urged the SBA to not deduct EIDL advances from PPP loan-forgiveness amounts, which is imposing unexpected debts on small-business borrowers.
The arrangement is proving to be a surprise for many given previous SBA guidance indicating EIDL advances do not have to be repaid, but not spelling out the impact on PPP forgiveness.
ICBA offers a guide on SBA lien requirements related to EIDLs and additional information on the federal pandemic response on its COVID-19 frequently asked questions.
