EDIL loan dos and don'ts
Do you know what you can use your EIDL loan funds for? What about what you can't?
Eligible expenses include:
Fixed debts (rent, etc.) Payroll Accounts payable Some bills that could have been paid had the disaster not occurred.
Ineligible Items: Dividends and bonuses Disbursements to owners, unless for performance of services Repayment of stockholder/principal loans (with exceptions) Expansion of facilities or acquisition of fixed assets Repair or replacement of physical damages Refinancing long-term debt 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 Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations Relocation (however, you can request written consent to relocate)
The SBA has an informative pdf document with more details about the new loans created by the CARES Act. You can find it here: https://bit.ly/30FxfPZ
Please contact your accountant for guidance on specific uses of your EIDL funds. We're here to help.