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Asked a question 3 months ago

Is the $10k EIDL payment a grant or a loan? Under what circumstances must it be paid back? I am single member LLC with no employees. I work as an independent contractor. Can I pay myself with this money and have it not be a loan? Same question for PPP. Would payments to myself be considered a "payroll expense" and forgivable even though I don't pay myself via w-2 through a payroll company? (I understand I can't use both the EIDL and PPP funds for the same expenses, but trying to understand each program separately.)

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Jennifer Castillo
Research Site Manager and Clinical Research Coordinator

Regarding your question about the $10k EIDL payment: This is considered a grant and will not need to be paid back even if you are denied getting the EIDL loan. My understanding is that money can be used to pay for payroll and expenses needed to keep the company going until further funds can be dispersed.