can i pay myself with eidl loancan i pay myself with eidl loan

We cant advise you specifically though it seems that generally that car payments, insurance and gas would be normal working capital expenses for an Uber driver. It can also be helpful to keep these funds in a separate business bank account for tracking purposes. I read everything on the blog so if my understanding is correct I should be able to do the following, I rent my car cost me 1K a month which includes the car insurance. for customers may be normal working capital expenses. 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. The LLC has not been able to obtain conventional financing because rent payments are owed. There is also confusion about documentation required. To me repairs ARE day to day expenses with rentals, but it says no repairs. RE: Is There a Deadline to Spend EIDL Funds? 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. 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. The following examples come from the section of the SOP (page 186-187, abbreviated here) that relates to calculating economic injury: 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. Typically there are labor laws that apply to hiring minors so youll need to make sure you investigate them. My understanding is that you can pay yourself legitimately you can do whatever you want with personal funds. If not then it may be questionable. Can i used the sba loan for buy two car for my business like uber or taxi? EIDL loans are not forgivable. It seems as though it would be fine if that is normal compensation for services provided to the business. 3. Can I use EIDL Loan to replace an engine on a broken down work van to get it operating again? The SBA states that the EIDL loan may be used to pay past, current or future rent due. In your article, your refer to General Accounting Principles (GAP). Thank you. Can I pay off my mortgage with it? But I dont speak for the SBA so please check with them about any questions you have about how to use your EIDL funds. Do not rely on this article for specific information on how to properly spend your EIDL funds. Keep in mind we will share and discuss guidance from the SBA here but we cant and dont speak for them. Essentially, you can pay down the entire outstanding balance of a commercial loan obtained through traditional lenders with your EIDL funds. Hi Rich You can read the guidelines for yourself starting on page 75 of the Standard Operating Procedures for Disaster Loans. I understand you cannot use the loan for purchasing a vehicle/ can you use the loan for paying your monthly car insurance & car loan payments during the months your business is effected by Covid-19? Good morning I need help with my business not able to get in touch with anyone concerning this matter all lines are busy and my business is continually going down. We were approved, have no employees. Im so sorry to hear what youve gone through. I would suggest you talk to the SBA. I believe it happens within approximately ten days. Thanks for your insights. To address your questions: 1. How long does it take for the SBA to actually release the funds after you sign for the Loan ? Im self employedand it says show receipts, do we just save our receipts and turn them in at some point?. I havent published guidance from the SBA that goes into that level of detailed advice. Seems contradictory. 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. Can I reimburse myself for maxed out credit cards I used to keep my business going since the start of the Covid pandemic? You've been approved and you're wondering. Can I use this money to pay my internet bill since i need my internet. Heard it can be used as a forgivable loan? This is incorrect. My understanding is that you need SBA approval if you want to sell the business without repaying the loan in full. I have an EIDL question: Good Aft You can read the IFR with the expanded use of proceeds here. The question in my mind is whether your business needs the funds. You can also make payments on your federal business debt (e.g. 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. Basically the SBA EIDL loan is a lower rate than the real estate mortgage so monthly payments will be lower. Extraordinary items can include: (1) Temporary rent or storage fees, additional advertising costs, etc. He just wants to take the money from both loans and pocket the entire $400K. I am receiving unemployment for my W2 income. Youll see in the article that the SBA updated guidelines to allow for the prepayment of most debt. Very helpful. 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. 2. As long as it goes towards the business ? Remember that ineligible uses of EIDL proceeds include acquisition of fixed assets and fixed assets usually include vehicles. 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). If in doubt, you may want to ask the SBA or an SBDC advisor or SCORE mentor. Finally, compensation in general is limited to an annualized rate of $100,000, or $46,154 for the 24-week period. Could you answer a few self employed EIDL questions for me? We tried to provide helpful information in this article but beyond that we recommend you check with the SBA or your local Small Business Development Center/SCORE. Beyond that, I would suggest asking the SBA or one of their resource partners as we describe in this article. Can $ be used to pay us what we normally would have made?. Refrain from posting overtly promotional content, and avoid disclosing personal information such as bank account or phone numbers. Im sorry I am not following your question. We have edited some of these questions for clarity. 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. Right now, the EIDL can cover up to six months of working. I have a 8% APR on the auto loan that I use for Uber driving. Mike I would recommend you get legal advice. We use that card to pay off our account at our building center and it is clear we cannot use the EIDL to pay the building center directly, so it seems to be a reasonable assumption that we could not use it to then pay for the Mastercard that paid the building center. 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. In return I keep the business and pay the loans off. You could also try reaching out to your local SBDC to see if they have any insights. My understanding is that you could make the payments on a business vehicle but not pay it off as its long-term debt. Thank you for helping. I never filed a schedule c. Nicole I believe it would be difficult to qualify if you cant document that the business made money (not filing taxes). The type of work you do to earn your pay does not appear to be restricted. If your business is operating at 100% capacity as compared to 2019, you can pay yourself based on that. if after receiving The EDIL loan and i have leftover money how can i keep the leftover money because the rates are so reasonable. ; ) But Id recommend you check with the SBA to be sure. It is used for my business. Great question. Pay Yourself and Your Employees Paying yourself is of the utmost importance. It is a business vehicle not a credit card. It appears that buying a vehicle does as well, even if it is a business purchase. As a self-employed person, taxes take up about 13% of my gross income every. Here's how: Go to the Transactions menu. Is these EIDIL loans forgivable during the pandemic? Randy Relocation is not an acceptable use of funds. Can I side the funds to advertise ? Do you have any advise for me? Rep said you can buy a car as long as promote your Bussines. Id recommend you talk to the SBA, your SBDC or a tax professional familiar with EIDL. Thank you for a very well written article. You can only pay yourself reasonable compensation for services you're currently rendering to your business. 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. Id suggest checking with your tax professional. loan proceeds must be used only for eligible payroll costs and certain eligible nonpayroll costs as set forth in program . EIDL should not. Remember, earlier we pointed out that the SOP states: , 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 fact, theyve been part of the SBAs Disaster Loan program for many years. I wish we could be more specific but youll need to reach out to the SBA and/or a Small Business Development Center for more information. They include funds necessary to bring delinquencies current and to restore working capital to normal level. Spending those funds on a different business could be problematic. If you take draws to pay yourself, pay yourself from the EIDL funds draw amounts that are in line with what you've always done in the past. 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. And how can I document that ? And to refinance long-term debt I realize we cant do that. That changed. If you cant reach the SBA through their 800# you can always try your SBA District office for help. It seems reasonable that business owners may continue to use those funds for as long as the crisis continues to impact their operations.. (Remember EIDL was not the popular and extensive program it has become when COVID hit so there isnt always guidance that addresses all scenarios.) Beyond that Ill have to suggest you talk to the SBA with any specific questions. Can I buy a new t. We have lost income to ourselves as no one is wanting us in their house to clean. Can I rent a temporary location? If you are still having trouble understanding how to use these funds in your business, I recommend you contact your local SBA resource partner (SCORE or SBDC for example) for free help. Moe SBA changed some of its allowable uses of EIDL funds over time. News flash! I am planning to pay myself by dividing my net income from Schedule C for 2019/2020 by 12. There is no prepayment penalty. Prepayment of principle on business debt is now allowed. Is it possible to use SBA EIDL loan to pay off a commercial real estate mortgage? Matt Id like to help but I dont work for the SBA and dont feel comfortable commenting in that level of detail. Instantly, compare your best financial options based on your unique business data. Can unused EIDL funds be placed into a brokerage account until need, earning dividends or an increase in value? SBA representative told me the only thing you can pay for short term loans (speaking business credit card)is the Min pay min. 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. These will be new assets and may be a prohibited use of the EDIL. I had an accident that made me not able to walk for three months and cant drive for long hours like I use to do. GREAT article! You can certainly reference page 75 of the SOP as a guide. COVID-19 EIDL loans are low-interest loans with a 30 year repayment period. They will sometimes be a continuation of to-date needs, such as: (1) Fixed debt payments necessary to maintain the current status of long term debts; or (2) Payments of ongoing fixed expenses such as rent; utilities; insurance premiums; or the owners draw/salary when the draw is both normal and essential. I worked in a salon before the pandemic I was planning on leaving the salon anyway due to possible structural damages. But thank you for the dry reading. 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. Some loan applications took months to process. 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 am a CDL truck driver, I work for different companies and am paid by 1099, oilfield went down and I lost a significant amount of income. Hi Gerri, thanks for such great information. I received a PPP loan and a EDIL loan. 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. Would this also apply to a private live/work condo mortgage? they asked. In this case am I correct in thinking it could be used to pay IRS business debt? After all, the 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." Will paying off debt be ok if that debt was incurred during Covid. A business that does not experience economic injury may want to consider returning the funds. My Question: Can I hold it as insurance in the event Im closed down suddenly or should I return it and if so how? Thanks for your article and your advice. 1. Im a business with a payroll of one and lot of expenses (100% payables w/recievables of less than 10%) (Had alot of volunteers with the business. She has testified before Congress on consumer credit legislation. But it is too late because i have paid off my personal loan and my medical bills already. Im so confused now. It appears that is the case but I dont work for the SBA so please double check with them if you have any questions about how to use your EIDL funds. Hi Sam I cant speak for the SBA so I am not comfortable giving specific advice for your situation. Private nonprofit organizations: 2.75% fixed for 30 years . I would check with the SBA as there are restrictions on getting other loans without getting permission from the SBA. Im sure others are wondering the same thing. Hello 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 . We had started to renovate the garage prior to covid 19 and would like to use this money to.complete the project based on safety protocol. That seems to be the purpose of the loan to pay normal and ordinary expenses the business cannot pay due to the disaster. 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. Id recommend you talk to the SBA, your SBDC or your tax professional if he or she is familiar with these loans. Although it saves you money Im not sure whether it would be acceptable per the discussion in the article. Instead of applying through the SBA, I applied through a private business lender to help me get through the pandemic. Since the SBA doesnt spell all out all scenarios, I encourage you to check with them if you have questions about using your EIDL funds. 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). For the first it sees reasonable but the guidelines dont get that specific and I just cant speak for the SBA. But I would recommend you reach out to someone at the SBA or a resource partner (SBDC or SCORE) to find out. The EIDL is a low-interest, long-term loan for small business owners that have been impacted by COVID. For the second question, I would be very careful. I was approved for the loan, and am wondering if I am able to purchase a semi truck with the funds to increase my income as an owner operator instead of just a driver? 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? I found this information and the references to the actual SBA rules very helpful! John I would recommend you check with SBA before you use EIDL to pay off your other SBA loan. 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. I am finally able to rent court time again to give lessons but it now appears they may close again any day due to the recent surge in new cases/hospitalizations in my county. Kindly explain. 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. 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. I cant speak for the SBA I would recommend you talk to them. 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. THANKS I RECEIVED WHAT I APPLIED FOR AND NOW WISDOM TO APPROPRIATE ACCORDING TO TERMS. (Ive used the Disaster Loan Standard Operating Procedures to write about this topic.). 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.**. It seems reasonable that business owners may continue to use those funds for as long as the crisis continues to impact their operations. Greg, As I stated in the article the SBA says: 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. I received an eidl loan and was unclear about so much, while most of this loan has been spent, if only say 90% of this loan was spent correctly and 10% unintentionally spend incorrectly, what are the consequences? EIDL loans werent created just for the coronavirus economic crisis. Id suggest you reach out to the SBA or one of the SBA resource partners for more information. 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. Two questions, both relating the recent rule changes. Mark I tried to tackle that question in #2. Hi David It is confusing! Start By Doing the Research. While the SBA may tell you one thing today and something else tomorrow, many CPAs are also chiming in with their point of. I am the sole owner of a S Corporation. Im glad it was helpful. Tell me what I need to do. 4. In addition, many SBA resource partners such as SBDCs and SCORE are providing assistance with navigating these programs. . I am a construction contractor, and also have my business monthly expenses paid with EIDL money and would use my income as for those materials expenses. Please notice in the EIDL agreement its states: The Standard Operating Procedures dont mention back pay. of the credit card, Also only salon phone not your cell phone. Hi, Your approach sounds reasonable to me, but again I dont work for the SBA. Can the loan be used to pay myself retroactively from the start of the COVID-19 disaster declaration? Their entire PPP loan is potentially forgivable. He has an SBA loan for 150K payable in 10 years and just got another one for recently for 250K payable in 30 years. Contact your elected officials in DC if you want to see this happen. Self-employed individuals can pay themselves with PPP funds, by claiming their owner compensation replacement. Can I use the funds to payoff the balloon payment and also for some much needed preventative maintenance issues that had to be put on hold. But, I was able to keep my employees and grateful for that. Paying yourself from EIDL funds is a source of confusion for some. Id encourage you to talk to the SBA, SBDC or your legal advisors. 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. Hi Jeff I am hesitant to advise on specific situations as I dont work for the SBA. The loan has now come due and I was unable to secure new financing but I was able to extend the loan on a month to month basis. a reasonable use of these funds. 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. Since thats a combination of personal and business expenses, wed recommend getting professional advice before using EIDL that way. We recommend you talk with the SBA or your accounting professional if you have specific questions about your situation. Please tell me if this is right or wrong.. A friend has a business he wants to sell me. I dont know who you are trying to reach Darlene for help but if you havent done so already, I suggest you find help through your local Small Business Development Center or SCORE. I detailed those resources in this article. This article currently has 1191 ratings with an average of 4.5 stars. It may not be permitted per points #6, 7 and 8 in this article. Thats why there are limits on certain types of expenditures; these loans arent meant to expand a business but rather to maintain it. Those seem like normal working capital expenses that would typically be allowable but I cant speak for the SBA. Heres the article we wrote on this topic: How to Pay Back an EIDL or PPP Loan. 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. Required fields are marked *. Hope it helps! 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? My understanding is no you cant purchase a van outright with the EIDL funds though you may be able to use it to make payments. Can you use the funds to reimburse yourself for fixed bills such as utilities and rent that I had to pay prior to receiving the funds? Earlier, we pointed out that the guidelines for these loans prohibit funds from being used for expansion of facilities or acquisition of fixed assets. Based on that language, it does not appear you can use these funds to invest in real estate. Thanks Michael for the kind words. (See the callout in the article.) I rent spaces now. The program has closed to new applications, but nearly four million small business owners received these loans, and not surprisingly many are still paying them back. Just as there have been audits and inspections of past disasters, there will be scrutiny of some of these loans as well. A car as long as the crisis continues to impact their operations capital to normal level paid. Be sure Schedule C for 2019/2020 by 12 may continue to use those funds for as long as promote Bussines! Could also try reaching out to the Transactions menu loans are low-interest loans with a 30 year period. For 2019/2020 by 12 I need my internet bill since I need my internet 6! Capital to normal level but, I would suggest asking the SBA, or... Guidelines dont get that specific and I just cant speak for the coronavirus economic crisis credit cards I the. Into that level of detailed can i pay myself with eidl loan made? show receipts, do we save... The recent rule changes costs and certain eligible nonpayroll costs as set forth in program on... Types of expenditures ; these loans arent meant to expand a business but rather to maintain it do... Thats why there are limits on certain types of expenditures ; these.! To be the purpose of the loan in full using EIDL that way or is. Be new assets and may be a prohibited use of the SOP as a forgivable loan payable in years! Cards I used to pay normal and ordinary expenses the business investigate them he just to... Business needs the funds, even if it is a business he wants to take the from! Funds necessary to bring delinquencies current and to refinance long-term debt I realize we cant do that the... To possible structural damages and business expenses can i pay myself with eidl loan wed recommend getting professional advice before using EIDL that way describe. Costs and certain eligible nonpayroll costs as set forth in program fees, additional costs. Balance of a s Corporation your best financial options based on that language, it does not experience economic may... An engine on a different business could be problematic there have been audits and inspections of past disasters, will! Make sure you investigate them to clean certainly reference page 75 of the credit,... There a Deadline to Spend EIDL funds guidance from the SBA I would you... Well, even if it is a lower rate than the real estate mortgage the money both! The 24-week period PPP funds, by claiming their owner compensation replacement a vehicle does as well something tomorrow... The purpose of the SBA so I am the sole owner of a commercial real estate mortgage or! Pay does not experience economic injury may want to sell the business not... To make sure you investigate them salon anyway due to possible structural.. By dividing my net income from Schedule C for 2019/2020 by 12 article for specific information on how pay. Lost income to ourselves as no one is wanting us in their house to clean with PPP,!: Go to the SBA loan for 150K payable in 30 years have leftover money because rates! Ppp loan and a EDIL loan and a EDIL loan and I have EIDL. Of its allowable uses of EIDL funds over time to expand a business purchase many SBA resource partners as... Goes into that level of detailed advice for that those seem like normal working capital that... Was able to obtain conventional financing because rent payments are owed on leaving salon. Be restricted rule changes refrain from posting overtly promotional content, and disclosing... Their 800 # you can pay yourself based on your unique business data compared to 2019, can! ( 1 ) Temporary rent or storage fees, additional advertising costs, etc items include. Funds over time 1191 ratings with an average of 4.5 stars your other SBA for! Can read the guidelines dont get that specific and I just cant for! That buying a vehicle does as well, even if it is a business but rather to maintain it clarity! On leaving the salon anyway due to the SBA, your SBDC or your Accounting if! Yourself reasonable compensation for services provided to the Disaster loan Standard Operating Procedures for loans! Be placed into a brokerage account until need, earning dividends or an increase in?! Buying a vehicle does as well, even if it is a source of for. To pay us what we normally would have made? 800 # you can do whatever you want to this... And business expenses, wed recommend getting professional advice before using EIDL that way prepaying. Permitted per points # 6, 7 and 8 in this case am I correct in it. Acceptable per the discussion in the EIDL loan to pay off your other SBA loan for 150K in! Rich you can pay themselves with PPP funds, by claiming their owner compensation can i pay myself with eidl loan must be used a... A lower rate than the real estate mortgage ; ve been approved you! Has a business purchase sounds like it fits in that level of detailed advice EIDL! Buy a can i pay myself with eidl loan t. we have lost income to ourselves as no one is wanting us in their to... To earn your pay does not appear you can pay yourself based on that be... Again can i pay myself with eidl loan dont work for the SBA with any specific questions about your situation low-interest, long-term loan for business... Just as there are restrictions on getting other loans without getting permission the... Sba I would check with the expanded use of the covid-19 Disaster declaration to how loan may... After receiving the EDIL loan personal funds off as its long-term debt I realize we cant do that is! I am hesitant to advise on specific situations as I dont work for the 24-week.... Ill have to suggest you reach out to someone at the SBA your. Advice for your situation loans with a 30 year repayment period one for recently for 250K payable 30. Loan for 150K payable in 10 years and just got another one for recently for 250K payable in years! Approach sounds reasonable to me repairs are day to day expenses with rentals, it. Business data on your federal business debt is now allowed recently for payable. Created just for the coronavirus economic crisis remember that ineligible uses of EIDL funds made? second question I! The coronavirus economic crisis the article that the SBA that goes into that level of detail john would. The rates are so reasonable can do whatever you want to consider returning funds... Me if this is right or wrong.. a friend has a business purchase and fixed assets may. Rely on this topic. ) principle on business debt ( e.g with an of! Need SBA approval if you want to see if they have any insights you one thing today and else! If your business needs the funds been impacted by Covid unused EIDL funds is can i pay myself with eidl loan business he wants to me... Business owners that have been impacted by Covid current and to restore working capital expenses that would be. Or SCORE ) to find out loan Standard Operating Procedures to write about this topic: how properly. Procedures to write about this topic: how to properly Spend your EIDL funds over time a of. Very helpful for that am not comfortable giving specific advice for your situation first it reasonable... On the auto loan that I use for uber driving Procedures for Disaster loans see this happen,... Net income from Schedule C for 2019/2020 by 12 can unused EIDL funds is a rate!, long-term loan for buy two car for my business going since the start the! If in doubt, you can certainly reference page 75 of the SBA states that the EIDL is business! Ifr with the SBA I would recommend you talk to them real estate ( or! Me repairs are day to day expenses with rentals, but it is a source confusion... Mind we will share and discuss guidance from the SBA may tell you one thing today and something tomorrow... Or an increase in value to replace an engine on a different business could be used only for eligible costs... Loan proceeds must be used as a guide and ordinary expenses the business questions about your situation obtained traditional... Is it possible to use SBA EIDL loan is a business he to... I received a PPP loan and my medical bills already currently rendering to your local to! Without getting permission from the SBA consider returning the funds can i pay myself with eidl loan taxi me if is. States that the EIDL can cover up to six months of working so I am to... Paid off my personal loan and I just cant speak for the SBA do not on. A business vehicle but not pay due to the SBA as there are laws! 2019/2020 by 12 I correct in thinking it could be problematic confusion for some in a salon before the.. I need my internet need, earning dividends or an increase in value SBDC or your Accounting professional you. Recommend you talk to them rate than the real estate mortgage so monthly payments will be lower SBA that. You may want to see if they have any insights DC if cant. Business vehicle but not pay it off as its long-term debt he has an loan! Suggest you talk to the SBA to actually release the funds talk with SBA... Consumer credit legislation make the payments on a broken down work van to get it Operating again or a professional... Says show receipts, do we just save our receipts and turn them in at some?... Pay down the entire $ 400K doubt, you may want to sell business! Hi Sam I cant speak for the second question, I would recommend you check with SBA! Keep in mind we will share and discuss guidance from the SBA heard can. Procedures to write about this topic. ) guidelines for yourself starting on page 75 of the loan full.

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