You Got the PPP & EIDL Money…Now What?

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The Paycheck Protection Program rolled out shortly after many had already applied, but had not yet received, the Economic Injury Disaster Loan grant.

Most gave up hope with the Small Business Association’s EIDL grant after applying for the $10,000 cash advance in March and seeing no money appear in their bank account three days later as SBA had promised.

Fast forward a week or two later when the government introduced the Paycheck Protection Program, which most every business in Scribner applied for with great results.

Weeks later after applying for both, local businesses saw the EIDL funds roll into their bank account ($1,000 per employee instead of the $10,000 cash advance), making a lot feel like they hit the pandemic jackpot.

Now, since the COVID-19 scare has nearly run its course, many are left asking if they can keep all of those funds or whether they need to pay them back.

Scribner’s Economic Development Director, Elizabeth Valla, talked with Tammi Marreel, vice president at the First Northeast Bank of Nebraska Hooper branch.

At this point, everything is really just speculation on how all these funds will be dealt with since the government hasn’t rolled out any official rules on how it will all be forgiven or paid back.

What it boils down to is: the EDIL will not need to be paid back to the SBA, assuming you can prove you spend it to keep you business afloat.


While you won’t have to send your EIDL funds back, Marreel talked with a few of her colleagues and they agreed: you should PUT THE EIDL MONEY ASIDE until the government puts rules in place with how this money will be paid back or forgiven.

Marreel said there could be a case where they may forgive all of the funds you’ve received (assuming you spent it correctly and can prove it) but until we know more, it’s best to sit on those EIDL funds.

And it’s not because the SBA would take away your EIDL money, but she thinks they may put a stipulation on the PPP, where they would subtract the EIDL funds from the PPP forgiveness, meaning everything but the amount you received from EIDL would be forgiven.

75% of the PPP has to be used for payroll, then 25% can go toward mortgage interest, utilities, etc. to make sure your business stays afloat during this pandemic. But it’s important you’re able to prove that 75% went toward payroll.

The EIDL itself will not need to be repaid (the $1,000 per employee was a GRANT, as long as you prove you spent it on your business). An email was later sent out from the Small Business Association that stated that if you wanted a loan, you could apply for more money, but that initial money you were given from the EIDL application was a GRANT.

EXAMPLE WITH HOW IT MAY WORK: Say you got $30,000 from the PPP, if you later received $10,000 EIDL money in your bank account…as it states now: the government will forgive $20,000 of the PPP (if you used it correctly *75% toward payroll) BUT $10,000 of that $30,000 PPP money will be rolled into a loan.

THE MORAL OF THE STORY: Sit on your EIDL funds if you can. If you can’t, it may be likely that it could get rolled over into a low interest loan via your PPP funds.