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The latest on the PPP and EIDL government assistance

EIDL application process is now open again.

IF YOU MISSED previously getting an SBA EIDL loan application in, the program has now been re-opened to all small businesses under 500 employees.

More on the EIDL later in this News.

PPP (Paycheck Protection Program):

When I last posted a News (blog) about the government’s assistance to business because of the national disaster, I informed you that the US Congress JUST THEN had passed legislation that extends the PPP loan forgiveness period from 8 weeks to 24 weeks. Unfortunately, we still do NOT YET have more guidance from the feds on this.

However, that legislation provides almost a no-doubt “slam-dunk” 100% forgiveness of the debt, except for one important factor.

Each business still has to be at the FTE employee level of 2019 by 12/31/20. That’s Full Time Equivalent, so that can be less or more employees, but, in simple terms, basically means the same # of hours worked in the last pay period of this year as was customary throughout 2019. That is not exactly how the item is calculated, so you may want to touch base with your advisor to make sure you qualify for full forgiveness, according to this factor.

And, obviously, businesses can spread the payment of payroll over the 24 weeks, providing more flexibility and opportunity to productively employ workers.

The other main factor is that 60% [instead of the previous 75%] of your payouts of the PPP loan money must go to payroll expenses (not counting payroll taxes).

NO PENALTY: Businesses may also defer federal payroll tax payments over the next 2 years without penalty. Therefore, there should be no tax notice from the IRS for any payment of 2019 federal payroll tax that may have been issued ‘late’, according to pre-COVID rules.

EIDL (Economic Injury Disaster Loan):

These loans are in the midst of funding by the SBA, and are based on your gross receipts from prior years, according to the EIDL application you filled out a couple months ago. You might recall this is the application that first gave your business a grant of $1000 per employee. Many business EIDL loans have already been funded, generally from $40,000 up to the maximum offered amount of $150,000. This money is working capital meant to assist you in returning to normal and to make up for the damages caused by the national disaster. As previously reported, paid back over 30 years at 3.75% interest after a 12 month delay.

You should know, however, that whatever amount your business is offered, you have the option to prove that the damage is greater than that, and apply for a greater amount.

If you applied and your business has not yet been funded the EIDL loan, consider calling the SBA at 1-800-659-2955, take option 2.

IF YOU HAVE NOT YET APPLIED, as stated above the process has been re-opened.

Go to this link to start your application:

If you need assistance with this application, please contact my office or fill out a contact form at

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