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How EIDL Might Affect Your PPP Forgiveness Amount
It’s always something, right? You’re doing everything you can to save your business and get and hold onto as much cash as possible to get through this Coronavirus pandemic, and then…
Could The Economic Injury Disaster Loan (EIDL) Impact How Much Of Your Payroll Protection Program (PPP) Loan Is Forgiven?
The short answer: Yes.
Someone you need to follow is Tyler McBroom. He’s a CPA, brilliant financial guy, and he was on Tony Robbin’s podcast recently teaching business owners everything they needed to know about both the EIDL and PPP.
We covered it extensively here at Loud Rumor, but there was a tidbit Tyler mentioned that we didn’t know about…
“If you’re one of the lucky business owners who received both your PPP loan and an emergency grant through the disaster loan program, you need to know how the forgiveness process works. There are a few calculations related to how much of the total loan can be forgiven mostly based on a combo of your total headcount and amounts paid on payroll, rent, and mortgage interest, and utilities during the forgiveness period.” – Tyler McBroom
What Tyler is talking about is that, essentially, if you were provided $90,000 through the Paycheck Protection Program and you also received $10,000 from the Economic Injury Disaster Loan, then, depending on other factors as well, only $80,000 of your PPP is available to be forgiven.
Now, that might be a punch in the gut, however, if you end up not needing any of it then it’s not so bad. But, of course, there’s a different way of looking at it.
Do You Still Have Your Fitness Studio Business And Did You Launch Your At-Home, Virtual Training Option?
Regardless of what’s forgiven (even though a lot of your PPP funds should be forgiven), if you took the steps necessary to save your fitness business and start a virtual fitness option, you’re playing the long-term game.
The fitness studio owners who will be hurt the most will be the ones who thought they could put all of their eggs in the government loan basket and “wait it out.”
The fitness studio owners who will come out ahead DESPITE this news will be the ones who got ahold of those funds as a “just in case” but focused their energy on virtual fitness because they were determined to “figure it out.”
When the dust settles on this Coronavirus pandemic, the fitness studio owners who chose to “figure it out” will have multiple streams of revenue, an enhanced virtual product (especially if they’re utilizing the brand-new Elite Virtual Studio program), and a very bright future.
If you’re nervous about this and you were the fitness studio owner who chose to “wait it out,” don’t worry. It’s not to late to start building the future of your fitness business. It’s not too late to build an at-home, LIVE virtual studio which 90+% of the fitness studio members we surveyed LOVE.