SBA Will Automatically Remit Previously Deducted EIDL Advances
January 11, 2021
SBA on Friday issued a procedural notice on the remittance of Economic Injury Disaster Loan advances previously deducted from PPP loan forgiveness amounts. The COVID-19 relief law reauthorizing PPP repealed the deduction of EIDL advances from PPP forgiveness.
“For those loans where SBA remitted a forgiveness payment to a PPP lender that was reduced by an EIDL Advance, SBA will automatically remit a reconciliation payment to the PPP lender for the previously-deducted EIDL Advance amount, plus interest through the remittance date,” SBA said. “PPP lenders are not required to request remittance of the reconciliation payment.” Read the notice.