Was Your PPP Forgiveness Reduced by Your EIDL Advance? Here's What You Need to Know About EIDL Advance Reconciliation Payments.
Recent legislation has eliminated the original requirement to deduct the amount of an EIDL Advance you may have received from your PPP loan forgiveness. If you have a PPP loan with an SBA forgiveness payment that was reduced by the amount of an EIDL Advance here is what you need to know:
– At this time, you do not need to contact the SBA or your lender. SBA will automatically identify loans where SBA remitted a forgiveness payment to a PPP lender that was reduced by an EIDL Advance.
– The amount of the reconciliation payment will be equal to the previously-deducted EIDL Advance amount, plus interest through the remittance date.
– SBA will remit the reconciliation payment to the the PPP lender of record in the Forgiveness Platform.
– Your Lender is responsible for notifying you of the reconciliation payment.
– Your PPP Lender will also re-amortize the PPP loan and notify you of the amount of the next payment due or advise you that the loan has been paid in full, whichever is applicable.
– If the amount remitted by SBA to the PPP lender exceeds the remaining principal balance of the PPP loan (because the borrower made a payment on the loan), the PPP lender must remit the excess amount, including accrued interest paid by the borrower, to the borrower.
If you have questions concerning the PPP loan forgiveness process or need assistance you can book a meeting with our business consultants to learn more.