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Jan 26, 2021
2 min read
Last update: Jul 14, 2023

PPP vs. EIDL: A Side-By-Side Comparison

The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) have both been renewed and are currently accepting applications. So how do you know which one is right for your small business? Check out this side-by-side comparison to help you decide:


Here are a few of the most commonly asked questions about both loan options.

Can I apply for both the PPP and EIDL?

Yes, you can apply for both the PPP and the EIDL, but you are not allowed to double dip. This means that you cannot use funds received for the same purpose. Also, the SBA explains, “businesses that receive an EIDL Advance in addition to the PPP loan will have the amount of the EIDL Advance subtracted from the forgiveness amount of their PPP loan”.

Are expenses paid with these loans taxable?

You are allowed to deduct eligible expenses paid with both PPP and EIDL funds and the amount you receive is not taxable.

Can I accept just the forgivable $10,000 EIDL Advance Grant and not the EIDL?

Yes. According to the SBA, “A small business can apply for an EIDL loan and later elect not to “close” or accept that loan. If they requested and received an EIDL Advance (by checking the request box within the EIDL loan application), that amount does not need to be repaid. There would only be a balance due if they accepted the full amount of the EIDL loan.”

I still can’t decide which loan is right for my business.

Consider your business’s most pressing need. Are you struggling to meet payroll? Are your primary needs to keep your employees on the payroll while also being able to afford rent, utility bills, and operating costs? If so, then the PPP may be the best option for you.

EIDLs are loans that have to be paid back with interest, as opposed to the PPP which is forgivable. But if your business is on the smaller side and in need of a quick influx of cash, applying for an EIDL may be a better option. If eligible, the $10,000 EIDL Advance Grant is usually issued within 3 days of applying.

Need more help deciding? We can help.

Whether to choose a PPP loan or an EIDL for your business can be a difficult choice. What is best for one business may not be what is best for another depending on a business’s cash flow and long-term and immediate needs. If you need help deciding which option is best for your company, contact us at (844) 284-2725 or click here.

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