Part of EIDL (Economic Injury Disaster Loan) is the widely-known $10,000 grant advancement that does not require payback. Business owners may still qualify for the grant advancement even if the SBA does not approve the loan application. For the uninitiated, the $10,000 grant advancement is financial assistance that the government is providing to business owners in addition to PPP loans.

Although the SBA doesn’t guarantee the $10,000 grant to business owners, the entire $10,000 is subtracted from the PPP loan amount. This may create a negative side-effect to a PPP loan amount; for example, if you were initially entitled to a $45,000 PPP loan amount, you will receive only $35,000 because of $10,000 grant subtraction.

We would suggest that business owners who were affected by this misled calculation should contact their banker to pursue the lost interest.