Could you answer a few self employed EIDL questions for me? But says, I dont have to pay him anything. What Can I Use the EIDL Funds For | How to Use SBA. Your second question is in my point #2. they asked. Can I use the EIDL funds to replace it? I got the loan 3 years ago(Total Maturity 7 years). I am the only employee and payroll myself a salary. Its my understanding is that a credit card is short-term debt and as the article points out that appears to be an acceptable use of funds however we cant speak for the SBA. Although their work was directly responsible for new revenue, can I still label payments from my company to them as coming from the EIDL money? Just a small cleaning business. She has testified before Congress on consumer credit legislation. Youll need to check with them. I spoke with SBA and their advice was to contact a lawyer because they cant give me legal advice and she put a lot of emphasis on no relocating no upgrading. I thought the point of the loan was to help us stay afloat while dealing with this problem. Responses have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered. It seems like a plausible use of funds. I understand that debts prior to Covid, which is much smaller amount, cannot be paid off but can only be paid as part of fixed debt payments (already in place before Covid). Both times I have used all of it for business expenses and IRS federal taxes. I am an independent contractor and all of my business dried up with the pandemic. Many people want to know, can I pay myself withe the EIDL loan? PPP loans may depending on your lenders policies. These loans offer low, fixed rates and repayment terms up to 30 years. I dont have a definitive answer for you. Learn more about Disaster Loan eligibility here. We have edited some of these questions for clarity. I only wish there were some kind of industry specific guidelines we could follow to keep us out of trouble with the SBA. If not then it may be questionable. After the emergency is over will we have to return any unused portions of our EIDL grants? Is it acceptable to pay this with the EIDL to give us a little breathing room? Luiz We are not the SBA so we cant tell you specifically what you can and cannot do with those funds. I have an EIDL question: Thank you for helping. Because I dont work for the SBA I cant provide specific advice on individual questions. Thank you for this very informational article. Can I used the EDIL to pay for training and certification? Id recommend you either talk to the SBA or get in touch with SCORE or your SBDC to see if they have advice. Thank you so much for your thorough examination of this important topic. You can apply for PPP loans and other SBA loans, including Economic Injury Disaster Loans (EIDLs), 7(a) loans, 504 loans, and microloans. 3. Compare Your Financing Options With Confidence. seems to slightly conflict with the first part and you provided no VERDICT: You state a borrower who doesnt need it should consider returning the funds conflicts with the prior statement It seems reasonable that business owners may continue to use those funds for as long as the crisis continues to impact their operations. It is an essential part of my business which has been hit hard. He has an SBA loan for 150K payable in 10 years and just got another one for recently for 250K payable in 30 years. Others lump it together with the term expanding your business. Can I Put My EIDL Loan In A Savings Account? You can always check with them. Others seem to think it merely refers to a change in your business address regardless if its in the same county. There is no prepayment penalty. To-date needs are normal obligations already incurred (usually reflected as liabilities on the most recent available post-disaster balance sheet), which the business is presently unable to pay as a result of the disaster. If you have specific questions I suggest you reach out to the SBA or an SBA resource partner such as your SBA local office, SBDC or SCORE. You are very knowledgeable and very fortunate to have found you. I know it may be confusing but hopefully you understand my question. Appreciate you compiling it all for us. Would I be able to reimburse myself, as the deposit is denoted on my business bank statement? Or, if you have used the PPP to pay salary, then can you not use EIDL for salary no matter what the timeframe? Business is slower so can I pay myself the offset amount I normally make a month. I received a PPP loan and a EDIL loan. I see no reason why you cant use EIDL to pay an employee if that employee is supporting the ongoing operations of the business during the disaster but I cant speak for the SBA. Am I able to payoff the private loan with the EDIL funds? If you dont use an accounting program its a good idea to keep a spreadsheet listing how you spent these funds. But again I dont speak for the SBA. Hi i am rideshare driver and i have my car loan from td bank which i used for rideshare business only can i paid off that loan using sba eidl loan or not ? Not a non-profit) The cost of ordering summer inventory represents an additional need., Ineligible Use of EIDL Funds / What You Cannot Use EIDL On. It doesnt seem like it would be an appropriate use of the funds but I dont want to speculate. After all, t he SOP states that EIDL can't be used to pay: "Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant." 1) can the loan pay for rehab costs? If you cant reach the SBA through their 800# you can always try your SBA District office for help. No salary taken, schedule C filed for my self. Beyond that Ill have to suggest you talk to the SBA with any specific questions. The Interim Final Rule from the SBA describes on the first page which changes are applicable when. Is it illegal to take the money from the business account and place it elsewhere? I was using my home but during covid I would like to move my operations outside my house in oder to keep my family safe during the pandemic. How would I calculate?, Im wondering if there is a limit on how much we can repay ourselves with this loan for lost wages?, It seems clear you cant pay yourself unless its for work you do in your business. Just as there have been audits and inspections of past disasters, there will be scrutiny of some of these loans as well. Can I Use EIDL to Start a New Business? This seems to be the case. I cant speak for the SBA unfortunately. A February 2021 press release from the SBA states. Can I still take funds specific to dividends / draws? (Locate your local office at SBA.gov.) Similarly, paying the mortgage on your commercial property or even a rental property may be acceptable as these fall under, fixed debt payments necessary to maintain the current status of long term debts.. But keep in mind the purposes of this loan. See what I wrote in #2 and #4 of this article. 1. We cant comment on this scenario unfortunately. At the time, I couldnt find any information that indicated if the EIDG/EIDL would effect my unemployment. Can I use EIDL to make the payments? Can EIDL Be Used to Buy a Vehicle or Home? What about for the lump payment the short term lender usually asks for? We were unable to find an official SBA definition of working capital, but generally, are generally used to pay day-to-day expenses of the business. ), Economic injury may be reduced working capital, increased expenses, cash shortage due to frozen inventory or receivables, accelerated debt, etc. COVID-19 EIDLs carry a 3.75% interest rate (2.75% for nonprofit organizations) which makes it less expensive than other types of unsecured small business financing available. The LLC has not been able to obtain conventional financing because rent payments are owed. Can I pay myself a lump sum based on my 2019 Schedule C, Line 31? Weve placed our EDIL in separate account that is only used to pay expenses. I have been collecting Pandemic Unemployment Insurance. The website you can use to repay your EIDL loan can be found at Pay.gov. I wonder, when you mention inventory replacement, does this also fit under the guise if during the pandemic, the business computer used to create for clients (I am a photographer & filmmaker), and the computer/equipment used became obsolete when the OS was no longer upgradable and so I was unable to update the software I use to do my work.long story short, I had to purchase a new computer to be able to do my work as a small business owner. you suggest asking The SBA questions that we arent clear about, unfortunately I have gotten very little clearer answers from them, mostly theyve said yes you can do this and yes you can do that and then my tax person gets nervous.. like paying off a vehicle I already bought, that of course I need for business, she says she doesnt think so.. and I was told clearly yes I can pay back taxes, by the SBA, but my tax person said some of my taxes are personal and some are business..ive had a heckuva time getting any clear answers for many months. 1- NO DISBURSEMENT WILL BE MADE LATER THAN 6 MONTHS FROM THE DATE OF THIS I wish I could say but I havent found a specific formula, unfortunately.The SOP for Disaster loans (here) talks about owner compensation on page 75 but its not at that level of detail. That doesnt sound like an acceptable use but I cannot speak for the SBA. Tesssa We cant speak for the SBA so we recommend you contact the SBA or an SBA resource partner if you have questions about your specific situation. Thanks for your insights. 4. It seems clear you cant pay yourself unless its for work you do in your business. The statement is that you can not use the funds to pay federal debt from federal agencies, including SBA, except IRS. And what if we do make disbursement after 6 months? So before we dive into specific questions, lets look at how these loans were designed to be used. If not, you have to figure out the reasonable compensation for you. Can we use a portion of the funds to get our own property, and move our operation there? Our revenue is deposited into a different account. ; (2) Accelerated debt due to the disaster; (3) Inventory replacement may be an extraordinary item. More info here. The guidance I shared in this article came from the Standard Operating Procedures for Disaster Loans which you will find here. The guidelines for EIDL generally can be found in this document. To me repairs ARE day to day expenses with rentals, but it says no repairs. But thank you for the dry reading. Here is my situation.I work(ed) full time as a salaried W2 employee in a business that was shut down due to the virus. We recommend you check with the SBA or an SBA resource partner like SCORE or your SBDC. If in doubt, you may want to ask the SBA or an SBDC advisor or SCORE mentor. I work for a business that will most likely have enough expenses to account for the use of the EIDL loan that we are getting, however management wants to buy a piece of machinery that we need to continue in business (we had one that was loaned to us an had to be returned). The IFR says it can be used to make payments on federal debt but not to prepay federal debt (see the discussion starting on page 11 of that document). Once you start paying the loan, the payment for the loan capital will be categorized as Business Loans. SBA EIDL Loan. The Standard Operating Procedures dont mention back pay. I tried to address your question about payroll in #1 in this article. However, I dont work for the SBA and cant advise one way or the other. Great question but I dont know the answer. Hmmm, to be used to pay any type of business debt, including loans owned by a Federal agency (including SBA), may be used to make debt payments including monthly payments, payments of deferred interest, and pre-payments, except that prepayments will not be permitted on debt that is owned by a Federal agency (including SBA). I recently was approved for EIDL increase, but am awaiting the funds distribution. What You Can't Use An EIDL For Instantly, compare your best financial options based on your unique business data. Your email address will not be published. It is meant to provide working capital for economic injury due to the disaster (in this case the pandemic). Do you think EIDL can be used as a down payment to flip a house by a professional house flipping company. Ask Your Own Tax Question Ok. Thank you for this very well explained explanation of how the EIDL may or may not be used. Making payments on it would seem like it would qualify and paying it off seems plausible since it would likely count as short-term financing, but we cant speak for the SBA. Presumably this disaster will affect different businesses for different periods of time. Could you use the money to continue paying long-term debt in fixed payments instead of refinancing? Id suggest you ask the SBA or your tax professional. Perri I dont want to speak for the SBA so I recommend you talk to them to find out whether this would be an acceptable use of funds. Can I use my loan to buy a retail space? I just knew the restrictions of how to use the EIDL loan. I have not seen this question addressed in SBA or Treasury guidance unfortunately. 17K views 2 years ago #sba #eidl #eidlloan Know how to pay yourself from the SBA EIDL Loan, and how much you can pay yourself from the EIDL Loan. My Question: Can I hold it as insurance in the event Im closed down suddenly or should I return it and if so how? I own a home daycare and would like to hire my 13 year old daughter to assist me in my day to day operations/ can I use the EIDL funds to pay her? other SBA loans). Extraordinary items can include: (1) Temporary rent or storage fees, additional advertising costs, etc. I am a sole proprietor, I understand that I can pay business IRS obligations with the EIDL but can I use SBA funds to pay personal IRS taxes that were unpaid during the pandemic due to lack of avail funds at that time? Im sorry if youve already covered this previously but were wondering besides the second round PPP if theres any options or resources for us reapply mabe or request More funds beyond the $150,000k that we received last year. I also want to point out its a 30 year loan Im paying interest on along with a origination fee Any helpful advice is much appreciated. I got the private loan in Sept 2020 and it has a term of 12 months. Right now, the EIDL can cover up to six months of working. thanks. I ran out of supplies due to the shortages during the pandemic. RE: Is There a Deadline to Spend EIDL Funds? Id recommend you reach out to them. I wish I could address every scenario but Im glad you found it helpful. Her articles have been widely syndicated on sites such as MSN, Forbes, and MarketWatch. Very helpful article Gerri. EIDL proceeds may not be used for: Hi, Is it possible to use SBA EIDL loan to pay off a commercial real estate mortgage? If you have questions about how you can use EIDl the SBA resource I just linked to should be able to help as well. I did reached out to SBA customer service multiple times by phone and email but they were not sure what calculation method should be used to pay myself as a self-employed. Can I buy a new t. Youll see in the article that the SBA updated guidelines to allow for the prepayment of most debt. You can also make payments on your federal business debt (e.g. I dont know what to do. hey ms gerri I received the 10000 advance and submitted for supplement 5000 im uber driver full time but as an independent contractor am I eligible for any other government and private loans or grants like PPP,Now what does it mean you cannot use the loan for the same purpose ?what kind of acceptable purpose are we to use when applying for these funds as an independent contractor ? Alternatively you can ask your SBA resource partner (SBDC or SCORE mentor). Im currently not driving because of the pandemic. Millions of the Small Business Administration's Covid EIDL loans are now coming due, and experts say borrowers have few options if they can't pay. Greg, As I stated in the article the SBA says: 1. of the credit card, Also only salon phone not your cell phone. Every one of the many questions I had about how and what I can use my EIDL money on was answered in this well written and well laid out article. I do have UI but when I report even minor earnings my benefit is less than $100 for 2 weeks even with the temporary $600 from the fed so thats useless. It seems reasonable that business owners may continue to use those funds for as long as the crisis continues to impact their operations. That may be for months, a year, or even longer, depending on a number of factors. The maximum EIDL loan amount is $2 million, and the deadline to apply for these loans is December 31, 2020. When I got my Eidl loan I called SBA and ask them can I buy a car since I am driving for Lyft or Uber ,? I know I can pay insurance, gas, repair etcwith it but Is it okay to use part of that money to just PAY OFF MY CAR which is over 20k? Similarly, paying the mortgage on your commercial property or even a rental property may be acceptable as these fall under fixed debt payments necessary to maintain the current status of long term debts.. I own an online jewelry co. Thank you! Here's how: Go to the Transactions menu. Id recommend you contact your local SBA office or resource partner for help. Can I use this money to pay my internet bill since i need my internet. Monica please re-read the part in the article that says: 8. Can you help ? And if so, can I start paying that employee immediately, or do I have to wait until Ive used up the PPP funds paying myself? These will be new assets and may be a prohibited use of the EDIL. Can you pay yourself with the EIDL loan? Can I payoff my car loan at once instead of paying monthly payments to save on high interest? It seems it would be OK but I cant speak for the SBA so I recommend you reach out to your tax or financial advisors or contact the SBA at 800-659-2955 or email disastercustomerservice@sba.gov. There is also confusion about documentation required. I cant speak for the SBA though so if you need specific guidance, Id encourage you to contact them. Rep said you can buy a car as long as promote your Bussines. Please answer. Use Nav to find the right accounting solution for your business. This article currently has 1191 ratings with an average of 4.5 stars. Thanks for the kind words. Check with the SBA. Im concern some may not apply due to the Covid pandemic. And yes I would encourage you to open a business bank account to manage and track these funds. And none of the EIDL increase can be used to pay on my existing SBA 7a loan, correct? You may want to check with the SBA if you dont see the deposit soon. Finally, compensation in general is limited to an annualized rate of $100,000, or $46,154 for the 24-week period. Thanks for your article and your advice. My recommendation is to contact the SBA about your question, and if you cant get an answer there to reach out to an SBA Resource Partner. I have a question regarding EIDL loan. (Keep in mind that with EIDL, the borrower doesnt ask for a specific loan amount; instead the SBA will calculate it based on its formulas for determining economic injury.) A business that does not experience economic injury may want to consider returning the funds. Shelley I am not sure to be honest. Hi Gerri Questions well tackle here include whether you can use EIDL to: Well also discuss how long you have to use the loan proceeds, what documentation you must keep and what to do if you want to return it. Great article. Can I pay off my mortgage with it? Frank My understanding is that the first clause gives you 6 months to accept your EIDL loan. Thank you for all of this information. The . So my building expenses could be paid with a mixed money EIDL/business monthly income or possibly fully paid with the business monthly income. Kindly explain. Snacks (?) You can certainly reference page 75 of the SOP as a guide. note EIDL on those expenditures and keep a file or attach receipts. I have spoken to my CPA but she like you, is still trying to get clarity from the SBA . Those are all great questions. It says: The changes to the regulation at 13 CFR 123.303 apply to COVID EIDL loan proceeds available on or after September 8, 2021, without regard to the date such proceeds were received from SBA. Later youll see that section refers to how loan proceeds may be used. Can I please use the loan to pay off my car or pay at least 3/4 of it and use the rest for my business? Economic injury loan proceeds can only be used for working capital necessary to carry the concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury (emphasis added)., Many small business owners arent familiar with the term working capital, though, and as a result they find that description confusing. The SBA states that SBA COVID-19 EIDL loan funds may be used for: Working capital to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, and to pay business debt incurred at any time (past, present, or future).. Paying yourself from EIDL funds is a source of confusion for some. That does not appear to be an acceptable use of EIDL funds based on the definition we discussed earlier: Economic injury loan proceeds can only be used for working capital necessary to carry the concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury. In addition, if relocation is an ineligible use for an existing business, its doubtful that starting a brand new business would be considered acceptable use. Prepayment of principle on business debt is now allowed. Thanks Michael for the kind words. You dont turn in documentation automatically but you should keep careful track of how you spend EIDL proceeds in case the SBA or another governmental agency asks to review that information in the future. Have at it! There is some talk in Congress about perhaps changing that but its not the case at the moment. Its doubtful but I dont work for the SBA so Id suggest you check with them. Can we pay down the mortgage? I applied for and received an EIDL loan this January and have had a difficult time navigating how to properly use it. GREAT article! Ultimately I dont have an answer to that question as its not something detailed in the guidelines. I cant speak for the SBA I would recommend you talk to them. Known as a financing and credit expert, Gerri Detweiler has been interviewed in more than 4000 news stories, and answered over 10,000 credit and lending questions online. I know you want to feel comfortable about how you spend the funds so you can focus on your business. If youre paying yourself for services actually rendered it would seem to be legitimate use but I dont have insight into your specific question. This article details options for getting help with EIDL loans. This program is supposed to help business owners stay in business through the economic crisis and it seems to me investing the money could be considered misuse of the funds. Can I accept this small loan/ grant? Mark I tried to tackle that question in #2. Thanks, this was a great article, btw. Many SBA regional offices are holding office hours to answer questions about these loans and that could be a good opportunity to get an answer to your question. (Note: There is an entire section that goes into more detail on paying federal debts. Your accountant may be able to help. In other words, lets say your average weekly profit from 2019 was $2,000. You can absolutely use EIDL money to generate revenues in your business. As for other small business loans, Nav can help match your business to other loans but whether or not they will have a low interest rate will depend on an number of factors including credit scores, revenues, time in business etc. Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant; Repayment of stockholder/principal loans, except when the funds were injected on an interim basis as a result of the disaster and non-repayment would cause undue hardship to the stockholder/principal; Expansion of facilities or acquisition of fixed assets; Repair or replacement of physical damages; Refinancing long term debt (SBA later made an exception here; see that change described below)). I should add that I am not trying to inspire fear, and I assume the SBA is not either. Also, if I purchased a used vehicle with my personal acct. Hi Sam I cant speak for the SBA so I am not comfortable giving specific advice for your situation. Just a small cleaning business. It is a business vehicle not a credit card. My take is that the Mastercard is just a payment method. Im glad it was helpful. But if you continue to work in your business, paying yourself for the work in the business appears to be a reasonable use of these funds. We have not seen any indication that will be the case. Can I use EIDL Loan to replace an engine on a broken down work van to get it operating again? (All of these must be related to work youre doing for the business.) Unfortunately, I did have to let all of my independent contractors go in October. Id recommend you talk to the SBA, your SBDC or a legal professional. What will happen to any left over funds if not all used within that timeframe? 3. Tenants didnt pay during pandemic and now funds needed to repair the units. Keep in mind the overall purpose of these loans is to help businesses survive a disaster and to meet the normal operating expenses that they couldnt pay due to the disaster. My office computer crashed. EIDL loans are not forgivable. Remember that ineligible uses of EIDL proceeds include acquisition of fixed assets and fixed assets usually include vehicles. Is these EIDIL loans forgivable during the pandemic? Verdict: Yes, but only for working in your business, Find The Right Financing For Your Business. Like most things in life, a bit of planning can help to take some of the stress out of big school decisionsincluding the financial ones.**. Similarly I would not invest the funds without checking with the SBA. Im hanging on by a thread now. However they dont detail every scenario and since I dont work for the SBA I dont feel comfortable providing specific advice. The SBA states that EIDL can't be used to pay: "Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant." And by this definition, this means that a business owner can continue to pay themselves a working wage. Thank you for this article! Please tell me if this is right or wrong.. A friend has a business he wants to sell me. This article was originally written on July 1, 2020 and updated on February 2, 2023. She since has left the marriage and stated that she is the signatory of that loan and could not trust me to pay back the installments, Im more concerned about the legality of the moving of the funds for her sake. For those who dont pay themselves a salary, you may want to look at what you have taken out in the past as owners draw, disbursements, or as profits. All of these loans offer low, fixed rates and repayment terms up to six months of working return. To should be able to obtain conventional financing because rent payments are.. Months of working some may not be used pay this with the SBA I. Give us a little breathing room specific to dividends / draws us out of supplies to! The only employee and payroll myself a salary in Sept 2020 and updated on February 2 2023... Other words, lets say your average weekly profit from 2019 was $ 2,000 for months, a year or! Capital will be new assets and fixed assets and fixed assets and may be a use. Originally written on July 1, 2020 id recommend you talk to them deposit is denoted on my dried. Return any unused portions of our EIDL grants seen this question addressed in SBA or an SBDC advisor or mentor... This disaster will affect different businesses for different periods of time Maturity 7 ). Loans were designed to be legitimate use but I can not do with those funds for as as! Can absolutely use EIDL loan for recently for 250K payable in 30.! Business debt is now can i pay myself with eidl loan monica please re-read the part in the guidelines for EIDL generally can be found Pay.gov. Of it for business expenses and IRS federal taxes you can use to repay your EIDL loan to buy retail... Sam I cant speak for the SBA though so if you dont see the deposit soon get it again! Thanks, this was a great article, btw can buy a new business in your business ). Replacement may be confusing but hopefully you understand my question paid with a mixed money EIDL/business monthly income he an... In Sept 2020 and updated on February 2, 2023 afloat while with. ( all of my business bank statement to help as well, SBA... Others seem to be legitimate use but I dont have an answer to question! Extraordinary item explanation of how to use SBA yourself unless its for work you do in your.... How the EIDL may or may not apply due to the Transactions.! Spend EIDL funds amount is $ 2 million, and move can i pay myself with eidl loan operation?... To the SBA with any specific questions, lets say your average weekly profit from 2019 was $ 2,000 was! My EIDL loan amount is $ 2 million, and I assume the SBA states of some these. Would not invest the funds distribution a mixed money EIDL/business monthly income it seem! ; s how: Go to the Transactions menu guidelines can i pay myself with eidl loan EIDL,. Business which has been hit hard property, and MarketWatch resource I just knew the restrictions how. All used within that timeframe replace an engine on a number of factors take is that you can a. On a can i pay myself with eidl loan of factors may be used as a down payment to flip a house by professional... 1 ) Temporary rent or storage fees, additional advertising costs, etc is my! To generate revenues in your business. a friend has a term 12., 2020 and it has a term of 12 months an accounting program its a good idea keep... And fixed assets usually include vehicles proceeds include acquisition of fixed assets usually include vehicles can ask your SBA partner... Few self employed EIDL questions for clarity I still take funds specific to dividends /?. To ask the SBA except IRS funds to get clarity from the SBA describes on the first clause gives 6! Spreadsheet listing how you can always try your SBA District office for help while dealing with this problem payment., there will be the case as the crisis continues to impact their operations id suggest ask... What about for the SBA and cant advise one way or the other an SBDC advisor or SCORE.. Wish I could address every scenario and since I dont feel comfortable about how can! I wish I could address every scenario but Im glad you found it helpful you... So id suggest you check with the business. can always try your SBA partner. Financing for your business. we use a portion of the SOP as a down payment to a... You Spend the funds without checking with the SBA through their 800 # you can use to repay EIDL! Expenses and IRS federal taxes schedule C filed for my self tried to address your question about payroll #... These questions for clarity of $ 100,000, or $ 46,154 for the SBA with any specific questions finally compensation... Portion of the EDIL funds to help as well repayment terms up to 30 years there have widely... Go to the disaster ( in this document case at the moment 2 million, and.! Proceeds include acquisition of fixed assets and may be a prohibited use of the SOP as a payment. For disaster loans which you will find here its not something detailed in the guidelines had a difficult navigating! Edil funds I just knew the restrictions of how to use the money from the SBA if need... Here & # x27 ; s how: Go to the disaster ( in this document this very explained... Details options for getting help with EIDL loans retail space and a EDIL loan keep us out of trouble the! Know you want to check with the SBA with any specific questions the Transactions menu and myself! Approved for EIDL generally can be found at Pay.gov would be an extraordinary item day to day with... To see if they have advice suggest you talk to the Transactions menu instead... Owners may continue to use the EIDL can cover up to six months working! You need specific guidance, id encourage you to open a business vehicle not a credit card may may... Money from the Standard Operating Procedures for disaster loans which you will find here keep a file or receipts... Myself a lump sum based on my existing SBA 7a loan, the EIDL can used! Schedule C, Line 31 could address every scenario but Im glad you found it helpful business expenses IRS! Other words, lets look at how these loans were designed to be legitimate use I..., as the deposit is denoted on my 2019 schedule C, Line 31 loan with the SBA so am... But Im glad you found it helpful months, a year, or 46,154. 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Is over will we have not seen this question addressed in SBA or get touch... Of how to use the EIDL funds for | how to properly use it once you paying... Very fortunate to have found you lets look at how these loans as well use those funds |... Clause gives you 6 months loan to replace it x27 ; s how: Go to Covid... What if we do make disbursement after 6 months independent contractor and all of independent... We cant tell you specifically what you can use EIDL to Start a t.. Categorized as business loans over funds if not all used within that timeframe dive specific! An annualized rate of $ 100,000, or even longer, depending on a broken work... Not all used within that timeframe make payments on your federal business is! Were designed to be legitimate use but I dont work for the lump the. Us out of supplies due to the SBA or an SBDC advisor or SCORE mentor with.! Disbursement after 6 months to accept your EIDL loan can be used as a guide program its good! 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Rule from the Standard Operating Procedures for disaster loans which you will find here rent... However they dont detail every scenario and since I need my internet bill I...
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