Advertiser Disclosure

🏦 Get funded today with one of our top 5 lenders for 2021

Economic Injury Disaster (EIDL) Loans VS Paycheck Protection Program (PPP) Loans: What’s The Difference?

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.
Shannon Vissers

Shannon Vissers

Shannon is a writer and editor based in San Diego, CA. Shannon attended San Diego State University, graduating in 2005 with a BA in English. She is the former editor-in-chief of SteelOrbis, an online trade publication. Shannon has also published articles for LIVESTRONG.COM, eHow, Life'd, and other websites. She has been with Merchant Maverick since 2015, writing about POS software, small business loans, and financing for women entrepreneurs.
Shannon Vissers
Leave a comment

30 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Chuch

    Hello, you stated “ The EIDL loan itself is not forgivable unless you later roll it into a PPP loan, a portion of which may be forgivable”. What determines how much of the rolled over amount is forgivable? Thanks, Chuck.

      Jessica Dinsmore

      Hi Chuck,
      The forgivable amount of the EIDL is essentially the amount spent on PPP-eligible expenses, i.e., payroll. However, this exception only applies to applicants who received an EIDL between January 31, 2020 and April 3, 2020. This post on EIDL forgiveness may help clarify.

        Paola A Aleman

        I am the owner of small insurance agency and on 5/4/2020 I was funded 11,925.00 with a PPP loan. Which I was able to use for about 5 payrolls. Later I applied for an EIDL loan which was funded on August 27, for $6000. I have used this loan for rent, utilities and payroll expenses. Will both amount be forgiven?

          This comment refers to an earlier version of this post and may be outdated.

          Jessica Dinsmore

          Hi Paola,

          It sounds like you’ve utilized the funds as intended. The PPP is forgivable as long as it’s used for qualifying expenses. The EIDL however, is not. If you received an advance/grant that portion does not need to be repaid, but the loan portion will. The only exception is if it is rolled into a PPP loan. I hope that helps!

            This comment refers to an earlier version of this post and may be outdated.

            zach

            Hello, so when the Eidl loan is “rolled over” to the PPP loan does that mean it also deducts those funds from your PPP? Just want a little confused on what the “rolling over”

              Jessica Dinsmore

              Hi Zach!
              It means that the “rolled over” portion of the EIDL will be forgiven along with the rest of your PPP. (As long as you meet the requirements, i.e., you spent it on payroll). So in a sense, it actually adds those funds to your PPP and subtracts them from the amount of the EIDL you’ll have to repay.

              More Comments

              Leave a Reply

              Your email address will not be published. Required fields are marked *

              Your Review

              Comment moderation is enabled. Your comment may take some time to appear.
              Please read the "User Review and Comment Policy" before posting.

              Share

              Get Started With Featured Pick! 🏆

              is our current featured vendor in this category.




              Get Started

              Learn more today with no commitment.

              Featured Offer: We Recommend QuickBooks 🎉

              Take it for a spin with a free trial.

              Try QuickBooks Today

              We Recommend Fattmerchant 🏆

              Fattmerchant is one of our top picks for Credit Card Processing!

               

               

              We love Fattmerchant as a credit card processor for its predictable pricing, excellent service, and integrated billing features. Get started today and get your first month for $5 with an exclusive Merchant Maverick promo.

              Get Started

              Get started with no commitment today.

              We Recommend Divvy Card 🏆

              Divvy Card is one of our top picks for Corporate Charge Cards!

               

               

              Divvy offers a free corporate card for virtually any business. Start earning rewards with your corporate spending today.

              Get Started

              Get started with no commitment today.

              We Recommend PaymentCloud 🏆

              PaymentCloud is one of our top picks for credit card processing!

               

               

              We love PaymentCloud's predictable pricing and excellent service.

              Get Started

              Get started with no commitment today.

              We Recommend PaymentCloud 🏆

              PaymentCloud is one of our top picks for credit card processing!

               

               

              We love PaymentCloud's predictable pricing and excellent service.

              Get Started

              Get started with no commitment today.

              We Recommend Donorbox 🏆

              Donorbox is one of our top picks for Donation Systems!

               

               

              Donorbox is a versatile, feature-rich, and easy-to-use donation management system that can help you attract more recurring donors. Get started today for free.

              Get Started

              Get started with no commitment today.

              We Recommend BigCommerce 🏆

              BigCommerce is one of our top picks for eCommerce Platforms!

               

               

              Bigcommerce offers exceptional tools for all eCommerce businesses from startups looking to build a site to enterprise-level systems. Now get a 15-day free trial + one month free when you upgrade!

              Get Started

              Get started with no commitment today.

              We Recommend Fattmerchant 🏆

              Fattmerchant is one of our top picks for Credit Card Processing!

               

               

              We love Fattmerchant as a credit card processor for its predictable pricing, excellent service, and integrated billing features. Get started today and get your first month for $5 with an exclusive Merchant Maverick promo.

              Get Started

              Get started with no commitment today.

              We Recommend Helcim 🏆

              Helcim is one of our top picks for payment processing!

               

               

              Helcim has exceptional service and an advanced platform that we highly recommend for businesses in Canada and the US. Get three months free when you sign up with Helcim through our links!

              Get Started

              Get started with no commitment today.

              We Recommend PaymentCloud 🏆

              PaymentCloud is one of our top picks for credit card processing!

               

               

              We love PaymentCloud's predictable pricing and excellent service.

              Get Started

              Get started with no commitment today.

              We Recommend OnDeck 🏆

              OnDeck is one of our top picks for Business Loans!

               

               

              OnDeck is our featured vendor for business loans and lines of credit. If you have at least one year in business, a personal credit score of 600 or higher, and $100K in annual revenue, OnDeck is ready to help your business get funded.

              Get Started

              Get started with no commitment today.

              We Recommend Lendio 🏆

              Lendio is one of our top picks for PPP/Business Financing!

               

               

              Lendio is a free-to-use marketplace that allows you to compare lenders side-by-side. Easily find PPP/SBA loans alongside other financing options.

              Get Started

              Get started with no commitment today.

              We Recommend PaymentCloud 🏆

              PaymentCloud is one of our top picks for credit card processing!

               

               

              We love PaymentCloud's predictable pricing and excellent service.

              Get Started

              Get started with no commitment today.

              We Recommend ADP Payroll 🏆

              ADP Payroll is one of our top picks for Payroll Software!

               

               

              Our reviewers like ADP Payroll for its advanced employee management, strong payroll features, and great customer support.👍

              For a limited time, get three months free when you sign up via our links!

              Get Started

              Get started with no commitment today.

              We Recommend Revel POS 🏆

              Revel POS is one of our top picks for Point of Sale!

               

               

              We love Revel POS for its advanced features and exceptional versatiliy in both the retail and restaurant industries. Get a demo today to find out everything Revel has to offer!

              Get Started

              Get started with no commitment today.

              We Recommend TouchBistro 🏆

              TouchBistro is one of our top picks for Restaurant POS!

               

               

              Our reviewers praised TouchBistro for a well-designed UI, easy to use format, competitive monthly cost, and numerous integrations. Sign up today to see it in action.

              Get Started

              Get started with no commitment today.

              PPP & EIDL Are Not Your Only Options

              The SBA has expanded their loan portfolio and we have the list that no one else is talking about (yet) — Sign up for our newsletter to get your free copy!

              • This field is for validation purposes and should be left unchanged.

              We Recommend Fundera 🏆

              Fundera is one of our top picks for SBA loans!

               

               

              Fundera is a free-to-use marketplace that allows you to compare lenders side-by-side. Easily find SBA 7(a)loans alongside other financing options.

              Get Started

              Get started with no commitment today.

              We Recommend ShippingEasy 🏆

              ShippingEasy is one of our top picks for shipping software!

               

               

              ShippingEasy got a 5-star review from our team. Get a 30-day free trial to access discounted USPS and UPS shipping rates and print labels in no time. No credit card required.

              Get Started

              Get started with no commitment today.

              We Recommend Square POS 🏆

              Square POS is one of our top picks for Point of Sale!

               

               

              Square is free to use and currently includes a free card reader at sign-up!

              No credit card is required to create your account.

              Get Started

              Get started with no commitment today.


               

              Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

              Sign up for the Maverick Newsletter

              • Please select topics of interest

              • We occasionally send out emails with special offers.