How to use EIDL vs PPP loans – a small business CFO’s perspective
There is a lot of confusion about the EIDL Loan and the PPP Loan. What are they used for? Can they be forgiven? What are the spending restrictions? How can I use them once I have them?
Although this video isn't about WHAT they are (that can be found here: https://www.youtube.com/watch?v=qQH16ucTloI&t=28s) it is about HOW to use the money once you've gotten it. The EIDL has fewer spending restrictions on it, but it is a loan (with a small grant portion if you were lucky enough to receive it).
PPP (Paycheck Protection Program) is more stringent and requires 75% of the loan amount to be used on payroll. Up to 25% of it can be used for other allowable costs.
As a small business CFO agency, we are seeing clients get these loans, and we are advising them on the best way to use them for future financial success and current financial stability. Using the funds improperly now can be a huge detriment to the business! In this video, we discuss cash flow forecasting.
Be sure to see that video here: https://www.youtube.com/watch?v=8Fa99diZLs8&t=179s
If you didn't get the PPP planning spreadsheet, get that here: https://clara-cfo-group-llc.ck.page/d5ef5d9b84
Find our company at https://claracfo.com/
Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.