How to Make up EIDL Advance and you will PPP Money
Congratulations! You just searched your bank account and noticed that both your own EIDL improve (grant) to possess $ten,100000 and you will PPP loan to possess $100,000 have been funded now. The tough region is more than! Or perhaps is they? Today is additionally the termination of the day, which means you need reconcile your finances and you may blog post this new entries for this passion. But what is the log entries so you’re able to checklist these types of purchases? Listed below are the necessary steps and you can journal records to ensure the right revealing way to such financing, in line with the issuance of the mortgage, forgiveness of mortgage, and you will tape off costs related to the loan. Listed here are certain conversation and you may ideal records to have GAAP foundation economic statements. Income tax basis financial statements could have additional reporting.
Because utilization of the PPP loan continues is essential for the determination out of forgiveness and deductibility to possess tax aim (talked about later), we advice keeping independent savings account especially for the brand new PPP mortgage and for additional safety this new EIDL improve, alone in the event that administratively feasible.