Economic Injury Disaster Loans to small business came in two flavors: Forgiveable loans (emergency grants) and low-interest loans.
The emergency grants were based on $1,000 per employee to be used for sick leave from COVID-19, payroll, materials costs, rent and mortgage, repaying obligations that cannot be met due to revenue losses. These grants do not have to be prepaid, but they are likely taxable, according the Nav.
The EIDL loans had relaxed application rules, but they will be repaid and handled as loans on taxes.
Borrowers must start repaying 12 months after they receive the loans.
