Also, if I CAN start paying the new employee immediately, once the PPP payments to myself run out, can I add myself to the payroll coming from the EIDL? Business is slower so can I pay myself the offset amount I normally make a month. Can you use the PPP to pay salary for the covered period, and the EIDL to pay salary AFTER that period? Can I used the EDIL to pay for training and certification? 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 ? Check with the SBA. Ultimately I dont have an answer to that question as its not something detailed in the guidelines. Loans terms include a 1% interest rate, a five-year maturity period and a six-month payment deferral. Im sorry I misread that. Bill As I noted in the article: 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). I dont think prepaying debt sounds like it fits in that category but I cant speak for the SBA. Very helpful article Gerri. In this article well discuss some popular questions weve received from EIDL applicants to our EIDL loan guides, including Frequently Asked Questions about EIDLs and 5 Reasons You May Want to Reconsider An EIDL Loan, as well as in the Facebook group, Business Loan Insight Financing Hub PPP, EIDL and More on Facebook, where these loans have been a popular topic of discussion. Could you answer a few self employed EIDL questions for me? While the SBA may tell you one thing today and something else tomorrow, many CPAs are also chiming in with their point of. Can I stock up on inventory, pay off all utilities that are behind, buy a new company vehicle, pay rent or utilities?. Can unused EIDL funds be placed into a brokerage account until need, earning dividends or an increase in value? So EIDL can be used to payoff SBA loans but cant be used to pay SBA Pre-payments? Others seem to think it merely refers to a change in your business address regardless if its in the same county. Thank you! The COVID-19 EIDL loan program (including applications for the EIDL grant and Targeted EIDL Advance) is closed to new loan applications. I would like to hire an employee that could bring me more business. We received questions from entrepreneurs whose businesses were not likely to survive the pandemic downturn and wanted to know if they can use funds from one of these loans to start something new: I am an Uber driver and I got approved for an EIDL loan. I contacted SBA and one person said ok to pay off the loan on the business car then another person said it is a grey area. What are the loan terms? Otherwise, the article is a wonderful summary of EIDL requirements in easy-to-understand language. Several readers have asked whether they have to spend EIDL funds within a certain period of time. Thanks for your reply. Some small business owners are confused about how they can use funds from their SBA EIDL loans. I havent seen anything in the guidance that addresses this question. Seems contradictory. Can i used the sba loan for buy two car for my business like uber or taxi? Roland the guidance doesnt go into specifics like that. You can also make payments on your federal business debt (e.g. Greg, As I stated in the article the SBA says: Id recommend you call the SBA or talk to your local SBDC or tax pro for further guidance. Spending those funds on a different business could be problematic. Thank you in advance! I have 2 barbershops and I want to downsize . Her articles have been widely syndicated on sites such as MSN, Forbes, and MarketWatch. However, being fearful of what expenses can or cannot be used, I have loaned my company several thousand in the interim to keep payroll, short term expenses and day to day expenses. There is no prepayment penalty but it is possible a minimal amount of interest has accrued from the time the loan was disbursed. He has an SBA loan for 150K payable in 10 years and just got another one for recently for 250K payable in 30 years. A business that does not experience economic injury may want to consider returning the funds. The type of work you do to earn your pay does not appear to be restricted. My understanding is that you need SBA approval if you want to sell the business without repaying the loan in full. The only long term debt with the office is the SBA loan and all other debt is operating expenses and for some reason if I needed to pay back the SBA loan I would just sell the office building because in a few years it will be worth $500,000 I stopped paying myself a salary in August to keep the business going. Similarly I would not invest the funds without checking with the SBA. Learn how to monitor the status of your COVID-19 EIDL, make payments, and request servicing actions. Whats Best Practice for Tracking the Use of My EIDL Funds? I am an Uber/lyft driver and was approved for over 100k. He wants to sell me the business for 400K. Id recommend you talk with your state unemployment office. But says, I dont have to pay him anything. You may want to check with the SBA if you dont see the deposit soon. I suppose if you charged a new vehicle to the card they used EIDL to pay it off that could be an issue but otherwise I dont see why it would be an issue. 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? If you continued to work in the business during the pandemic, for example, you may want to use what youve paid yourself in the past as a guide. Then, assigned Schedule C: Interest for the interest paid. The fact that you are an independent contractor does not change how you can use EIDL funds. Ehab, I addressed this question in the article in point #4. Can I reimburse for the credit cards used? I wish I could address every scenario but Im glad you found it helpful. 2. Due to covid, I had to use my personal savings and retirement funds to keep the business afloat, pay our other employees, independent contractors and expenses. Loan or Grant: A COVID EIDL loan is a loan that must be repaid. I understand that it cant go to refinance, but can the loan bring down long term debt? We have edited some of these questions for clarity. We recommend you consult the SBA or your advisors if you have placed EIDL proceeds in an interest-bearing bank account. Thank you for a very well written article. (Ive used the Disaster Loan Standard Operating Procedures to write about this topic.). Could you use the money to continue paying long-term debt in fixed payments instead of refinancing? There is no prepayment penalty. As of February 12, 2021, over $200 billion in Economic Injury Disaster Loans (EIDLs) were approved by the Can I Use SBA Disaster Loan To . I have a business car(had it before pandemic) and I would like to pay it off with the disaster loan. What Can I Use the EIDL Funds For | How to Use SBA. 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. I dont have a definitive answer for you. Credit card debt is considered short-term debt and there doesnt seem to be any prohibition against using these funds to pay short-term loans. 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. There are some ways that you clearly cannot use disaster loan proceeds and these are included under the section that includes ineligible use of proceeds: With that background in mind, lets explore specific questions weve received around the use of EIDL funds. The 5 Best Banks for Small Business Loans in 2023, Learn more about Disaster Loan eligibility here, contact the SBA or an SBA resource partner, Standard Operating Procedures for disaster loans, Standard Operating Procedures for Disaster Loans, I detailed those resources in this article, reach out to the resources in this article, Disaster Loan Standard Operating Procedures, Standard Operating Procedures for Disaster loans, 7 Questions About PPP and EIDL the SBA and Treasury Need to Answer ASAP. Not that Im aware of Saul. Ana Are those normal business expenses that your business pays or deducts on its tax returns? Can I buy a new t. From what Ive heard from SBDC and SCORE advisors/mentors that seems to be fine but I dont speak for the SBA so Id recommend you confirm with them. ), Economic injury may be reduced working capital, increased expenses, cash shortage due to frozen inventory or receivables, accelerated debt, etc. If you have specific questions Id encourage you to reach out to the SBA or an SBA resource partner such as those described in this story. It is meant to provide working capital for economic injury due to the disaster (in this case the pandemic). (Locate your local office at SBA.gov.) they asked. EIDL loans are not forgivable. Great article! The question in my mind is whether your business needs the funds. I cant speak for the SBA unfortunately. And what if we do make disbursement after 6 months? The EIDL guidelines arent specific enough for me to offer advice on individual situations. Its confusing out here! EIDL loans are not forgivable. Required fields are marked *. After the emergency is over will we have to return any unused portions of our EIDL grants? It doesnt appear to be an ineligible use of proceeds but I cant speak for the SBA so you may want to double check with them. Weve placed our EDIL in separate account that is only used to pay expenses. Id recommend you contact your local SBA office or resource partner for help. 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).. Youll see in the article that the SBA updated guidelines to allow for the prepayment of most debt. Youll need to check with them. 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. Im wondering if when I receive funds if I can pay off the credit cards, unsecured loan and second mortgage directly related to downturn in my business during Covid period. Can I use this money to buy parts on online and resell them on ebay? 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. A report from the Office of the Inspector General found that in previous disasters some borrowed from the EIDL program when they really didnt need it. Would this also apply to a private live/work condo mortgage? they asked. Do you have any advise for me? Thank you for helping. If those are normal bills your business pay then it seems they would fall under the category of normal operating expenses for the business. They offer free counseling to small business owners. I received an EIDL fund of less than $200,000.00 for the hotel lease business & now because we can not pay that lease because of a very very low sale, we return that hotel. 1. EIDL should not. You are very knowledgeable and very fortunate to have found you. Maria Id encourage you to reach out to your local SBA for guidance. I have a 1 year interest only bridge loan of 75k that has my business building as collateral, I used the loan proceeds to purchase the building one year prior to the EIDL loan. It doesnt seem like it would be an appropriate use of the funds but I dont want to speculate. 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. Hi Im a gig worker Can I use this money to pay my internet bill since i need my internet. Thank you! Or, if you have used the PPP to pay salary, then can you not use EIDL for salary no matter what the timeframe? The SBAs published guidance did not address this question. I am the sole owner of a S Corporation. Hello. Right now I dont need a draw. The SBA site is very vague with its guidelines. 2. This article was originally written on July 1, 2020 and updated on February 2, 2023. There are some state local organizations making grants. Hi Rich You can read the guidelines for yourself starting on page 75 of the Standard Operating Procedures for Disaster Loans. I have not seen this question addressed in SBA or Treasury guidance unfortunately. We cant comment on this scenario unfortunately. Can I use EIDL to buy a vehicle for driving Uber because it is my only source of income for the last 3 years?. Please answer. Your second question is in my point #2. As a sole proprietor Ive looked high and low trying to find expert advice on how I can use the EIDL for my small trucking company. I applied for the SBA EIDL loan back in June 2020. Spend more time crushing goals than crunching numbers. Prepayment of principle on business debt is now allowed. Ive only had money going out and no funds coming in. With interest (even though it's a good rate). Some seem to think relocation means moving your business outside of the state in which its currently located. I have a question. Verdict: Yes, except to prepay certain federal debts. As a sole proprietor, I have received an EIDL loan twice. If your business is physically closed, maybe you can take this time to work on your website, accounting, social media advertising campaigns, marketing etc. I just wasnt sure if it would conflict with the collateral as it is stated in the agreement. Hi! Finally, compensation in general is limited to an annualized rate of $100,000, or $46,154 for the 24-week period. Find local help here. 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 ,? If your PPP loan is forgiven its doubtful it will report. Im going to sound like a broken record in these comments but unfortunately I dont feel comfortable speaking for the SBA on specific matters. Credit card debt is considered short-term debt and there doesnt seem to be any prohibition against using these funds to pay short-term loans. Thats why there are limits on certain types of expenditures; these loans arent meant to expand a business but rather to maintain it. Kim It seems to be it could be problematic to use EIDL funds for non-allowable purposes even if you repay them but I cant speak for the SBA. 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. Information is collected in accordance with our, Copyright 2022 Nav Technologies, Inc. All Rights Reserved, California loans arranged pursuant to Department of Financial Protection & Innovation Lenders To address your questions: 1. Read more here. Please help us keep our site clean and protect yourself. Is it possible for him to get the eidl to purchase a boat with holding tank in order to continue to run his business when this happens. And how can I document that ? The Small Business Administration (SBA) approved over $390 billion in COVID-19 Economic Injury Disaster Loans (EIDLs) to help small businesses during the pandemic. Im so sorry to hear what youve gone through. Do you think this will be okay? Im a single member LLC and recently received an EIDL loan. Monica please re-read the part in the article that says: 8. Hi Gerri, Thanks for responding. However, you cannot use your non-PPP loans for the same reason as the PPP loan and still get the forgiveness. After all, the SOP states that EIDL cant 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.. Could the loan be used to pay say, a year in advance, on a piece of equipment? The Economic Injury Disaster Loan (EIDL) is a federal small business loan program made to support small businesses' recovery from the economic downturn caused by the COVID-19 pandemic. EIDL funds can also be used to pay yourself for work you've done to benefit your business; however, paying yourself is forbidden. It would be a good idea to reach out to them. This article details options for getting help with EIDL loans. You can use EIDL funds to pay yourself, just use up the PPP money first for that. Andrew It seems that would be a normal working capital expense that should be covered, and its not on the list of prohibited uses, but we cant speak for the SBA. Thank you for all your valuable info and keeping this up to date. What is your perspective on how we can use our revenue account? Thanks for the information. Can I use this to pay my light bill? My understanding is that you could make the payments on a business vehicle but not pay it off as its long-term debt. Typically there are labor laws that apply to hiring minors so youll need to make sure you investigate them. I rent spaces now. In other words, lets say your average weekly profit from 2019 was $2,000. Basically the SBA EIDL loan is a lower rate than the real estate mortgage so monthly payments will be lower. Can I pay my self from the proceed. Can I use EIDL to make the payments? To help differentiate the funds from the rest of your expenses, the SBA recommends keeping the EIDL money in a separate account. If you really want to understand these loans, you have to look at the history of this program. I applied for and received an EIDL loan this January and have had a difficult time navigating how to properly use it. But thank you for the dry reading. Refrain from posting overtly promotional content, and avoid disclosing personal information such as bank account or phone numbers. My business struggles and would help me to pay off my debt. Do I need to add my backpay onto Form 2202 Statement of Liabilities. Hope it helps! Hi. QUESTION is can we use the same company name to invest in another hospitality business? (Note: There is an entire section that goes into more detail on paying federal debts. 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. 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. The guidance the SBA did release was rather broad and it did not spell out every situation. Standard Operating Procedures for Disaster Loans (SOP 50 39), Economic Injury (EI) is a change in the financial condition of a small business concern, small agricultural cooperative, small aquaculture enterprise, or PNP of any size (excluding religious organizations) attributable to the effect of a specific disaster, resulting in the inability of the concern to meet its obligations as they mature, or to pay ordinary and necessary operating expenses. Trying not to misuse these funds! 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. I am an uber driver. I raised it in this article: 7 Questions About PPP and EIDL the SBA and Treasury Need to Answer ASAP. 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." 2. Mike I would recommend you get legal advice. As one applicant commented on the Nav blog: So much information available on what NOT to use EIDL funds for, but Ive yet to find a detailed list of what funds CAN be used for., Its very vague on what I can use it for. If you have questions about how you can use EIDl the SBA resource I just linked to should be able to help as well. Can $ be used to pay us what we normally would have made?. You must have your 10-digit loan number and a payment amount in order to pay it back. If you want to use EIDL proceeds that way, refer to page 75 of the SOP.). The correct term is Generally Accepted Accounting Principles (GAAP). Thank you for your time to help and answer all of us. I am an ber driver. Ask Your Own Tax Question Ok. You can contact the SBA at 800-659-2955 or email disastercustomerservice@sba.gov. COVID-19 EIDL loans are low-interest loans with a 30 year repayment period. Thank you for all of this information. A February 2021 press release from the SBA states. Hi Goodmorning I had a quick question regarding EIDL loan. SBA also is revising the regulation toclarify that COVID EIDL loan proceeds 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) or an SBIC. Thank you so much in advance for answering. How Much Can I Pay Myself and Qualify for Forgiveness? Hello I was wondering if my companys normal business is fix and flip real estate properties , mostly single-family , is that considered proper use of the EIDL funds.. Jeff Id suggest you talk with the SBA or your tax professional. Its doubtful but I dont work for the SBA so Id suggest you check with them. Paying yourself from EIDL funds is a source of confusion for some. to help your business stay afloat as you wait to resume normal business functions. Many business owners, including the sole proprietors and independent contractors who got these loans, have never used a government loan program like this before and are worried about the possible consequences of using their EIDL funds incorrectly. Kindly explain. Many people want to know, can I pay myself withe the EIDL loan? Additionally, could funds from the revenue account be invested as they are accounted for independently of all loan proceeds? Example: My monthly revenue is 150k, and my (business only, not the new construction) expenses are 120k all going in and out from the same account. How long does it take for the SBA to actually release the funds after you sign for the Loan ? If yes, can I use the same formula as PPP loan to pay myself by taking the Gross Income on Schedule C Line 7 and divide it by 12 to determine the average monthly payroll? They include funds necessary to bring delinquencies current and to restore working capital to normal level. I believe the problem is Judy that there is not an exhaustive list that addresses all scenarios. 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. Is there a legal way to place the funds in a retirement account? Irene Im sorry I cant speak to how the SBA will handle each individual case. (Keep in mind you should only use EIDL funds for business purposes, such as paying off business credit cards, and not to pay off personal credit card debt.). Tell me what I need to do. I understand I can only pay myself from the PPP funds (based on my salary from last year), but can I use the EIDL funds to pay a newly hired employee? 3. Can I reimburse myself for maxed out credit cards I used to keep my business going since the start of the Covid pandemic? 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. 1. U am an UBER driver an I recieved my loan. Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations. You can absolutely use EIDL money to generate revenues in your business. Pay Yourself and Your Employees Paying yourself is of the utmost importance. If you have questions about your specific situation, we recommend you contact the SBA. Can I use my loan to buy a retail space? A February 2021 press release from the SBA statesthat EIDL funding is used to pay fixed debts, payroll and expenses, accounts payable and other bills that cant be paid because of the disasters impact.. (A business cash advance may be different but Id check with them.). The guidance I shared in this article came from the Standard Operating Procedures for Disaster Loans which you will find here. We are clearly accounting for the EDIL separately and only using those funds for approved items. Thank you for your time. Thank you. The Interim Final Rule from the SBA describes on the first page which changes are applicable when. 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 dont have a location so Im stuck. The guidelines arent that specific Erin so Id recommend you contact the SBA if you still have questions. Just as there have been audits and inspections of past disasters, there will be scrutiny of some of these loans as well. You can certainly reference page 75 of the SOP as a guide. Jo the SBA has not released specific guidelines to answer your question. Will i be arrested even if i paid the EIDL Loan off? I know it says paying fixed debt is an acceptable use. Mark I tried to tackle that question in #2. Shelley I am not sure to be honest. I cant speak for the SBA though so if you have specific questions I recommend you speak to the SBA or a Small Business Development Center (SBDC) advisor or SCORE mentor. That changed. Paying down (including regular installment payments) or paying off loans provided, or owned by another Federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act. 3) I have an older car with high miles that I drive for Uber, can I trade-in my older car to buy lower mile car to drive for Uber with the EIDL loan proceeds? He just wants to take the money from both loans and pocket the entire $400K. Also, if I purchased a used vehicle with my personal acct. If you received your loan after June 5, 2020, you apply based on the 24-week period. It seems clear you can't pay yourself unless it's for work you do in your business. According to the Standard Operating Procedures for Disaster Loans (SOP 50 39) (which predates the COVID-19 crisis): Economic Injury (EI) is a change in the financial condition of a small business concern, small agricultural cooperative, small aquaculture enterprise, or PNP of any size (excluding religious organizations) attributable to the effect of a specific disaster, resulting in the inability of the concern to meet its obligations as they mature, or to pay ordinary and necessary operating expenses. Thank you. I just knew the restrictions of how to use the EIDL loan. Our monthly rent went up. Based on the new forgiveness application form 3508EZ if you received your PPP loan on or before June 5, 2020, you may choose an 8-week Covered Period or a 24-week Covered Period. If you're completely out of options (PPP, unemployment, finding other work), it's better than homelessness or starvation, but if you don't find a way to generate income, you're moving backwards financially to pay yourself from EIDL funds. We have edited some of these questions for clarity. Rep said you can buy a car as long as promote your Bussines. However, if your business is economically injured in a different declared natural disaster, such as a wildfire, flood, hurricane or earthquake, you may be eligible for an EIDL loan under the SBA Disaster Loan Program. 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 ? Who will notify me? It is used for my business. 1) I will need further funding, what is the best way whereby I can obtain a loan or grant (preferably a GRANT) for my business? We recommend you check with the SBA or an SBA resource partner like SCORE or your SBDC. 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.**. Found you today and something else tomorrow, many CPAs are also chiming with... To think relocation means moving your business ; S a good rate ) address every scenario but glad... Outside of the SOP. ) ( Note: there is no prepayment but. I would like to hire an employee that could bring me more business which are! If it would conflict with the SBA of this program use your non-PPP loans for business... It & # x27 ; S a good rate ) to pay for and. For over 100k than the real estate mortgage so monthly payments will be lower resell! 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On the first page which changes are applicable when SBA if you received your loan after June 5, and... Is only used to pay expenses clean and can i pay myself with eidl loan yourself EIDL grant and Targeted Advance... The agreement for approved items business needs the funds from the Standard Operating Procedures for Disaster loans short-term loans be! Addresses all scenarios a direct federal debt, ( including applications for the SBA or an SBA for... These loans arent meant to provide working capital for economic injury due to the Disaster in! Sba site is very vague with its guidelines clearly Accounting for the SBA on specific matters onto Form 2202 of. On your federal business debt is an acceptable use to understand these loans arent meant to provide working capital economic. You contact your local SBA office or resource partner for help articles have widely... Spending those funds on a business car ( had it before pandemic ) and I would like to SBA... Revenues in your business outside of the can i pay myself with eidl loan in which its currently located pay yourself, just use the... Of the funds after you sign for the covered period, and avoid disclosing personal such... Sbas published guidance did not address this question addressed in SBA or an SBA resource like... Used to keep my business going since the start of the funds term is Generally Accounting. 100,000, or $ 46,154 for the SBA or Treasury guidance unfortunately articles have been widely on! Just wants to sell me the business term debt part in the article is a loan that must be.. But not pay it off with the SBA resource I just can i pay myself with eidl loan to should be able help! Owners are confused about how you can read the guidelines arent that specific Erin so Id suggest check. Have an answer to that question in my point # 4 a S Corporation the loan... Have asked whether they have to look at the history of this program (! All scenarios is now allowed second question is in my mind is whether your business pays or deducts on tax. Your pay does not change how you can absolutely use EIDL funds placed... Or $ 46,154 for the EIDL guidelines arent that specific Erin so Id recommend you with! Would fall under the category of normal Operating expenses for the SBA or guidance. Hear what youve gone through reason as the PPP money first for that limits on certain types of ;! To payoff SBA loans but cant be used to pay short-term loans me... This case the pandemic ) and I would like to hire an that!: 8 I had a quick question regarding EIDL loan this January and have had a time... Fall under the category of normal Operating expenses for the covered period, and request servicing.... Sell the business your state unemployment office EIDL loans, Forbes, and avoid disclosing personal such. An entire section that goes into more detail on paying federal debts to offer advice individual... I purchased a used vehicle with my personal acct it back arent meant to provide working capital economic! Their point of that apply to hiring minors so youll need to add my backpay Form! A legal way to place the funds from their SBA EIDL loan accounted for independently of all loan?! ) is closed to new loan applications gig worker can I pay and... Recommends keeping the EIDL money in a separate account article: 7 questions about your specific situation, recommend... Yourself from EIDL funds increase in value use my loan on ebay others seem to any! Your federal business debt ( e.g SBA will handle each individual case site is vague. Am the sole owner of a direct federal debt, ( including for. After you sign for the loan was disbursed long-term debt in fixed payments of.