The use of funds was expanded to include the repayment and early repayment of non-federal corporate debt contracted at any time (past or future) and the repayment of federal debt. The EIDL COVID-19 program, which runs through December. The IFR also expands EIDL COVID-19 eligibility from organizations with no more than 500 employees to companies in the most affected industries that have 500 or fewer employees per physical location, provided that the company, together with its subsidiaries, has no more than 20 locations. The new rule allows COVID-19 EIDL beneficiaries to use loan proceeds to pay off debt, including monthly installments, deferred interest and early repayment of corporate debt.
The same payments, except for prepayments, are now allowed on loans from federal agencies (including the SBA) and authorized small business investment companies (SBICS). COVID-19 EIDL beneficiaries can use the proceeds of the loan to pay off debts incurred before and after submitting the loan application. Previously, the funds could only be used as working capital needed to maintain the company until it could resume normal operations. The AICPA Paycheck Protection Program (PPP) resource page contains resources and tools produced by the AICPA to help address the economic impact of the coronavirus.
For resources to support small businesses in the post-pandemic environment, visit the AICPA's CIMA Small Business Resiliency Resource Center %26%. For more news and reports on the coronavirus and how CPAs can manage challenges related to the outbreak, visit the JoFA coronavirus resource page or sign up for our email alerts to receive the latest news about the PPP. The Journal of Accountancy is now fully digital. This quick guide guides you through the process of adding the Journal of Accountancy as a favorite news source in the Apple News app.
Funding quickly ran out, leaving 177,300 companies without proof of attendance, according to the SBA, of unmet funding needs by companies in an economy that is now facing an increase in COVID-19 infections related to the Delta variant of the virus. AICPA experts discuss the latest on COVID-19 EIDL and other programs to help small businesses during a virtual town hall held every two weeks. The Small Business Administration (SBA) Economic Damage Disaster Loan (EIDL) program offers help to eligible small businesses and nonprofits affected by COVID-19, including charitable organizations such as churches and private universities. Read on for an overview of the EIDL program and how to qualify and submit an application, as well as what you should know when revenues from the Paycheck Protection Program (PPP) must be used to refinance EIDLs.
The Notice clarifies that the amount of the EIDL loan to be refinanced does not include the amount of any EIDL advance received by the PPP borrower, since such advances do not need to be repaid. Businesses can qualify for these COVID-19 disaster loans regardless of whether they have suffered property damage, and they can use the funds to help cover their working capital needs and cover operating expenses as they recover from the impact of the pandemic. Instructions are provided on how to electronically submit EIDL refinance payments to the SBA, with a note that on the appropriate form, you must enter the EIDL loan number, not the PPP loan number, in the SBA Loan Number field. For PPP loans where the lender's application (“Paycheck Protection Program” loan guarantee form) included an amount for the “Refinancing of an eligible loan for economic damage disasters”, net of the down payment, PPP lenders are instructed to disburse and remit the Loan income used to refinance an EIDL loan directly to the SBA, not to the borrower PPP.