In terms of forgiveness of PPP funding, there is a brand new simple one-page forgiveness form. Your banker or lender should have this form on their website. Organizations that received under $150,000 in PPP loans (PPP1 or PPP2) are eligible for forgiveness.
Another $15 billion has been set aside under ARPA for the Economic Injury Disaster Loan Program, or EIDL. This new round of EIDL allows some hard-hit companies to apply for a second grant. When EIDL first came out last year, there was a potential for a grant or forgiveness for up to $10,000 of the loan. Most businesses received $1000 per employee. Now, if you are a business that is in one of the low to moderate income areas, you are being sent invitations from the SBA to submit a second application for EIDL forgiveness up to $10,000, including anything you might have received through the initial EIDL program. Even if you’re not in a low to moderate income area, you can still apply for the EIDL loan, which is a fantastic loan, with interest rates of under 4%. In fact, the EIDL could add some much-needed capital to your business through this second round.
However, in order to be eligible, you have to prove more than a 30% reduction in gross receipts, which is a slightly higher than PPP’s 25% reduction. This reduction in revenue must be during an eight-week period starting March 2, 2020 or later (when the pandemic started here in the US). Remember that you have the burden of proof of showing the 30% reduction in order to receive the loan. This loan is not forgivable, and payoff terms are 30 years. The interest rate is 3.25% interest for businesses and 2.25% for nonprofit organizations.