They said it is true that you cannot have both loans at once, but that you can take out the EIDL loan first, then when you take out the SBA 7(a) PPP loan you can refinance the EIDL into the PPP loan. Fortunately, we have enough reserves and our employees will be furloughed, so we aren’t going to worry about the EIDL. Also, keep in mind that the $10,000 “gift” from the EIDL loan will be deducted from the amount of PPP forgiveness received so it doesn’t actually benefit you in the end unless you just need cash quick.

Our biggest question now is when the $350 billion will run out, since it is in our best interest to wait as long as possible while our staff are collecting their full salaries via unemployment and we are closed before we finally do the PPP loan. But if we wait too long we’re in big trouble because we could miss out.