The latest COVID-19 relief bill repealed the section of the COVID Aid Relief and Economic Security (CARES) Act which required the Small Business Association (SBA) to reduce a borrower’s Paycheck Protection Program (PPP) loan forgiveness by the amount of any Economic Injury Disaster Loan (EIDL) Advance received. The SBA’s Forgiveness platform has been updated to reflect this enhancement and will no longer deduct the EIDL Advance from forgiveness applications submitted from this date forward.
For those of you who already processed a forgiveness application, but did NOT receive full forgiveness because of an EIDL Advance, you will not lose any benefit for submitting early. If you previously paid an EIDL Advance balance in full, or started making monthly payments on an unpaid EIDL Advance balance, you will be reimbursed. The reimbursement date will depend upon SBA processing times. While we are unable to give you an estimate on when reimbursement will occur, you should know that it will happen and we will do our best to keep you informed.
For those of you who chose to repay a previously unforgiven EIDL Advance Balance over the remaining term of the PPP note, please do not make any more payments. If you had an Automated Funds Transfer (AFT) set up for automatic monthly payment, we will remove it for you.
Additional PPP Funding
Specific rules, guidance, new loan applications and instructions have not yet been released by the SBA. We will make program information available on our website once it becomes publicly available and we have had an opportunity to review and understand it. For updates, please stay tuned to https://www.mvsb.com/ppp-information/