While community bank Paycheck Protection Program lending has been the cornerstone of the U.S. economic recovery, many lenders and borrowers are bumping into an unexpected hindrance—the treatment of federal Economic Injury Disaster Loan advances.

To address this growing conflict between EIDL advances and the PPP, ICBA is urging you to contact your members of Congress and to direct aggrieved borrowers to ICBA’s small-business alert on the issue.

If you haven’t bumped into this yet, more than 1 million PPP borrowers are beginning to realize that SBA-originated EIDL advances are not the grants they expected. Rather, if EIDL advance recipients have also received a PPP loan, the advance amount is deducted from their loan forgiveness amount.

As ICBA has told policymakers since August, this arrangement is leaving borrowers with as much as $10,000 in unexpected debt and community banks with loan balances on their books for EIDL advances originated by the SBA.

While legislation to address the issue has been introduced in Congress, community bankers and small-business owners need to work together to get Washington’s attention and ensure this problem gets the attention it deserves.

Tell Congress: Fix the EIDL Loophole

Tell Congress: Loophole Costs Small-Business Owners Thousands 


Rebeca Romero Rainey
President and CEO
Independent Community Bankers of America