Please be aware there are rumors circulating that you cannot apply for both the EIDL loan and the Paycheck Protection Program (PPP 7(a)) loan—or at least that you can’t roll one into the other, Forbes possibly being one of those sources. That is not correct and we have confirmed that through our contacts with the ADA who spoke directly with the government committees working on the bill and also confirmed it with Democrat and Republican sources separately and with a Finance committee. All sources on Capitol Hill agree—you are permitted to apply for both. You are permitted to roll the EIDL loan into the PPP loan.
With that said, deeper analysis is making the PPP loan less exciting than originally hoped, even though it has a forgivable component. We will still likely be recommending this loan but there are more factors we need to analyze. We will pass along details on the PPP loan as soon as we can process the information.
Another rumor previously circulating was that application for the SBA EIDL loan had to be submitted by 3/31/20. This is NOT correct. You are not up against a hard deadline.
There are a lot of things we are still working out so as to advise you properly on your appropriate course of action over the next couple of weeks. But this we do know: We recommended previously that you move forward, if you haven’t already, in applying for the SBA EIDL loan. We continue in this recommendation. Have your 2018 tax returns ready and information about your business liabilities when you begin the application, as well as personal financial information. Applying for this loan will allow you to receive an advance of up to $10K which is a grant that will not have to be repaid. The grant piece has been passed but is not accessible yet—meaning the application process, the platform and all the administrative requirements of distributing the grant money are not finalized. You will have to go back to SBA when the grant piece becomes available and request the advance. When we know the timing and process on this we will pass it along. You will not have to reapply for the loan, just put in the formal request for the advance.
As stated above, there is not a 3/31 deadline for this process. However, the grant money will be distributed first come, first served, until the funds are exhausted. For that reason you should start your application quickly. Please note there are already talks underway that a possible Phase 4 bill would increase the amount of funds available for the grant portion.