We Are in This Together
The SBA has recently updated important guidance regarding the EIDL initial grant of $10,000.00. We are in this together. As such, we are passing this information along to our Bucks County business community. Please feel free to contact us with any questions. 215-997-7222.
Previously, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) required the amount of any Economic Injury Disaster Loan (EIDL) Advances received by a Paycheck Protection Program borrower to be deducted from the forgiveness payments remitted by the SBA to the PPP lender. The Economic Aid Act repealed the applicable section of the CARES Act, and EIDL Advances are no longer deducted. If a PPP loan was reduced by the EIDL Advance, the SBA will automatically remit a "reconciliation payment" to the PPP lender, and the PPP lender will notify the borrower. The lender is also responsible for notifying the borrower of any reconciliation payments, and is also responsible for either re-amortizing the loan and notifying a borrower of the next payment due, or informing the borrower that the loan has been paid in full. Any borrower affected by this process may check with their lender for their status, but the borrower is not required to initiate, as the SBA is remitting payments and it is the lender's responsibility to update any and all loans.
Pritchard, Bieler, Gruver & Willison P.C.
590 Bethlehem Pike, Colmar, PA 18915