Jan. 05, 2021
While the SBA writes new rules on the next round of the Paycheck Protection Program, the ICBA-advocated fix to Economic Injury Disaster Loan advances is effective immediately and retroactive.
As advocated by ICBA and community banks, the end-of-year stimulus package fully forgives EIDL advances to ensure they are not deducted from PPP loan forgiveness amounts. SBA has adjusted its systems so that the fix is in effect now, though it will need to determine how it will make whole those borrowers that already received forgiveness payments with the EIDL amount deducted.
Meanwhile, the new stimulus law requires SBA to issue new rules on the next round of the PPP within 10 days of enactment. The package was signed into law on Dec. 27.
More details on the PPP provisions of the stimulus package are available in an Independent Bankers Association of Texas matrix of PPP updates and in ICBA's summary of the stimulus package's community banking provisions.