What about EIDLs (Economic Injury Disaster Loans)? These companies-which proved to be lifesavers to gig workers who may lack business accounts-work with banks so you don’t have to, and then shepherd your loan application to the SBA, which makes the final decision. But there are ways around it-like using an online broker or payment company like Square, PayPal, SmartBiz or Lendio. ![]() Sometimes lenders require little documentation for forgiveness others require more-bank statements, tax returns, tax receipts like 1099s, etc. Some borrowers have had their PPP Round 1 loans forgiven. Here are some Frequently Asked Questions: The loans are ultimately administered by the SBA (Small Business Administration) via a bank or online lender. The entire PPP program is due to expire March 31. But that doesn’t mean you can take a third draw (you are limited to two, at least as the plan now exists). As part of the 1.9 trillion American Rescue Plan just signed by President Biden, $7.25 billion is being added to the overall fund, which actually still has money left over from the December 2020 relief bill. Round 2, which enabled businesses to apply for a second draw, will expire March 31. Both the Trump Administration and the Biden Administration, in order to make the program less restrictive, made changes midstream. ![]() The process went more smoothly, even though borrowers-this time, the limit on employees was 300-now had to demonstrate a 25% loss of income during the same quarter in 20. Round 2 (another $310 billion) was part of a December 2020, $900 billion COVID relief bill, also signed by President Trump. The $350 billion fund-which was available to businesses with 500 or fewer employees-quickly ran out in April 2020. ![]() Some wealthy companies that got PPP checks had to be shamed into returning them, but lots of distressed businesses received money fairly quickly. Round 1, as part of the 2.2 trillion CARES Act signed by President Trump in March 2020, came with lots of frustrations-and inequities.
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