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    EIDL Loans

    What is the tax treatment of EIDL Loans?

    #2
    They can be used against PPP forgiveness application. But there may be a limitation based on the date they received the funds.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

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      #3
      A loan is a liability on the balance sheet, long-term or short-term based on your loan agreement. Principal payments lower that liability. Interest payments are a deductible expense.

      If you're asking about the interplay for an EIDL grant with a PPP loan, that's a different question.

      Or are you asking about what expenses qualify to be paid with EIDL loan monies?

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        #4
        Like Lion replied, it is like any other loan for business. Here is a link for you: https://www.sba.gov/sites/default/fi...092120-508.pdf

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          #5
          Client received $1000 in EIDL Grant which in my understanding is money that they do not have to pay back. Based on research this should be included in income and the expenses used to pay from the funds are deductible. I want to confirm if that is the case.

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            #6
            Oh, the Grant, not the EIDLoan...

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              #7
              I wonder if the tens of thousands of EIDL grants (over a quarter of a billion dollars) that were given to ineligible businesses will be considered taxable income? Apparently SBA didn't even use EINs to cross reference which applicant businesses were active on Jan 31 and actually had employees. Another government agency run into the ground and harming taxpayers instead of serving them.

              An Avalanche of Fraud Buried a Small-Business Relief Program

              Last edited by Rapid Robert; 10-31-2020, 08:36 AM.
              "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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