SBDC Questions and Answers


What exactly is the difference between EIDL loan and PPP? Can I have both?

Yes, a borrower can do both, providing the funds are used for different purposes. The PPP can be forgiven if funds are used to pay specifically designated expenses. There are no personal guarantees and the basis is 2.5x the average payroll expense in the last year or $10 million, whichever is less. The EIDL loan is up to $2 million, so it’s perhaps less money than the PPP, but the application is much more rigorous and consistent with typical SBA emergency loan standards.

Note: The EIDL also comes with the opportunity to get a quick $10,000 advance feature. It will be forgiven if the loan application is denied. If the applicant applies for a PPP loan, this $10,000 EIDL advance will be added to the PPP loan basis and deducted from any loan forgiveness.