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EIDL Series Post 1: The Only Certain Thing About Economic Injury Disaster Loans is Uncertainty

Updated: Feb 15, 2022

Part 1: The Only Certain Thing About Economic Injury Disaster Loans is Uncertainty

EIDL – Did we use the funds correctly? Can and will I be audited? Many say, no but the experts suggest you better be ready for what is ahead.

This is the first post in a multi-post blog regarding some of the ambiguous areas of the EIDL program which as to date funded nearly 4 million small businesses.

By Thomas W. Tramaglini, Managing Director at BRP Onesta

One of the biggest questions that our clients ask our advisors was and is how Economic Injury Disaster Loans (EIDL) funds can be used. We always advise our clients to consult with their accountants but from our communications with small business owners we know that many do not consult their accountants until it is too late.

Remember, EIDL funds are not forgivable - Unlike the Payroll Protection Program (PPP) the EIDL program is a loan that is NOT forgiven by the Federal Government. That is… yes, you must pay it back.

On the surface the EIDL loans were exactly what was needed for many businesses in 2020 (beginning approximately in March). In fact, to date, according to the SBA1 has provided over $316 Billion Dollars in Pandemic Relief funding to small businesses. (For more on these statistics and how much the Feds will get in return for lending the EIDL funds go to That comes to over 3,865,600 different approvals throughout the United States and eligible territories. In comparison to PPP funds ($790,921,572,3582), EIDL funding provided approximately 60% less funding to small business owners to sustain their businesses during the pandemic.