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. The fact that you are an independent contractor does not change how you can use EIDL funds. 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. As a sole proprietor, I have received an EIDL loan twice. I have 2 barbershops and I want to downsize . Is there a legal way to place the funds in a retirement account? 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. 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. How Long Does It Take For EIDL Loan To Fund? Glad this was helpful! Luiz We are not the SBA so we cant tell you specifically what you can and cannot do with those funds. It can also be helpful to keep these funds in a separate business bank account for tracking purposes. Kelly I havent found good information on that question either. Your opinion is greatly appreciated. It is in my name because my business did not have credit when I financed it. She is the author or coauthor of five books, including Finance Your Own Business: Get on the Financing Fast Track. If you dont use an accounting program its a good idea to keep a spreadsheet listing how you spent these funds. Essentially, you can pay down the entire outstanding balance of a commercial loan obtained through traditional lenders with your EIDL funds. Thank you for this very well explained explanation of how the EIDL may or may not be used. I cant speak for the SBA though so if you need specific guidance, Id encourage you to contact them. While there is no comprehensive list of how EIDL funds may be used, if youre trying to err on the side of caution, there are clues in the section of the SOP that describes how to calculate economic injury. However they dont detail every scenario and since I dont work for the SBA I dont feel comfortable providing specific advice. We were approved, have no employees. Hello I have a work cargo van that I use for my business. Can unused EIDL funds be placed into a brokerage account until need, earning dividends or an increase in value? I stopped paying myself a salary in August to keep the business going. I have 2 questions regarding spending the EIDL Loan. I applied for the SBA EIDL loan back in June 2020. Learn how to monitor the status of your COVID-19 EIDL, make payments, and request servicing actions. Single member LLC, I normally dont take a draw, depending on profits. 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 ,? Good Aft Will paying off debt be ok if that debt was incurred during Covid. I dont have a location so Im stuck. 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. I recommend you reach out to the SBA or one of its resource partners. There may be other state or local programs available I would recommend you contact your local SBA resource partner for more information. Alternatively you can ask your SBA resource partner (SBDC or SCORE mentor). Interest Rate and Term: Businesses: 3.75% fixed for 30 years . Please tell me if this is right or wrong.. A friend has a business he wants to sell me. Hi Gerri! 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 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. And how can I document that ? I would imagine that may depend on that depends on whether it is a normal business expense but I cant advise specifically one way or the other. Paying yourself and your employees (if you have them) is not only legitimate but necessary to keep your business running. I also applied for and already received funds from an EIDL earlier this month. Thank you. Our interest rate is higher than 3.75%, and isnt amortized for 30 years. Ive only had money going out and no funds coming in. Id suggest you ask the SBA or your tax professional. I cant speak for the SBA. There is no prepayment penalty. I have never had a brick and mortar for my business and would have had the opportunity to sooner if covid didnt happen, so I am viewing the use of this money towards first months rent and security on my first shop space as part of my working capital. 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. Can I Use EIDL to Start a New Business? 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. Thank you so much for this clearly written article that has been of help. 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. In the past, SBA guidelines appeared to prohibit paying off or refinancing long-term debt with EIDL proceeds. It is an essential part of my business which has been hit hard. Can I use a portion of my eidl loan to pay for my health insurance. My business struggles and would help me to pay off my debt. Could you please offer some insight? The Interim Final Rule from the SBA describes on the first page which changes are applicable when. 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).. Unlike the Paycheck Protection Program, a COVID EIDL loan is not forgivable. Its confusing out here! I only wish there were some kind of industry specific guidelines we could follow to keep us out of trouble with the SBA. Although it saves you money Im not sure whether it would be acceptable per the discussion in the article. These loans are not supposed to go to businesses that dont need them. One Uber driver who says they were approved for a $45,000 EIDL wanted to know if its OK to use that money to buy a home. I used this loan only for the business, not personal. So the pandemic hit and not being able to pay the existing rent from not working, there I decided to leave the salon for both of those reasons. 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. Ive seen different interpretations of whether we can use our Revenue for items excluded from use from the EDIL. Can I pay myself a lump sum based on my 2019 Schedule C, Line 31? If not, you have to figure out the reasonable compensation for you. If Im approved for the EIDL Loan, can I use some of the funds to pay a portion, or all, of the backpay owed to me, if theres enough funds available for me to do so? Basically, I went from $165K gross receipts in 2019 to nearly $0 in 2020-21. Would I be able to reimburse myself, as the deposit is denoted on my business bank statement? Id consult with them or your tax professional for specific advice. Of course youll want to track that. Thank you. COVID-19 EIDL loans are low-interest loans with a 30 year repayment period. How Much Can I Pay Myself and Qualify for Forgiveness? 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. The guidance I shared in this article came from the Standard Operating Procedures for Disaster Loans which you will find here. I have not seen this question addressed in SBA or Treasury guidance unfortunately. At the same time they havent provided a lot of specific guidance on questions like yours. Great question but I dont know the answer. Heard it can be used as a forgivable loan? LOAN AUTHORIZATION AND AGREEMENT UNLESS SBA, IN ITS SOLE DISCRETION, may i use funds to repair cosmetic damage to the car? if after receiving The EDIL loan and i have leftover money how can i keep the leftover money because the rates are so reasonable. I am the owner and only employee of the company. : My entity (C-corp) that is requesting the EIDL loan is operating from a building and pays rent to a separate entity (LLC) that owns the building. I received a PPP loan and a EDIL loan. And yes I would encourage you to open a business bank account to manage and track these funds. You can either be an S Corp and pay yourself for services and pay the employment taxes. As such, processing times for these loans took much longer than usual. I like to resume when situation gets little better. Can I use EIDL Loan to replace an engine on a broken down work van to get it operating again? Is there anyway I can return my EIDL loan money after accepting and signing the document of it? Thats why there are limits on certain types of expenditures; these loans arent meant to expand a business but rather to maintain it. Spending those funds on a different business could be problematic. But, I was able to keep my employees and grateful for that. I cant speak for the SBA though so I recommend you check with them. Thank you for your time to help and answer all of us. Your answer to the question Is There a Deadline to Spend EIDL Funds? (Not saying they are but could be.) Verdict: Yes, except to prepay certain federal debts. Because of Covid and other business expenses, the entity requesting EIDL funds (C-corp) is behind on rent payments. Then, assigned Schedule C: Interest for the interest paid. EIDL loans are not forgivable. Please contact the SBA. Their entire PPP loan is potentially forgivable. We recommend you check with the SBA or an SBA resource partner like SCORE or your SBDC. I dot see why that would be an issue but I dont work for the SBA so feel free to check with them or one of their resource partners if you have questions. It is used for my business. Does forgiveness loans and EIDL loans report to credit agencies. He also lost gear due to this. 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. I have a question regarding EIDL loan. Is this allowed. Hi Jeff I am hesitant to advise on specific situations as I dont work for the SBA. 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. Frankly, I dont have an immediate way to spend the funds I received. 2) if we purchase a house using a short term hard money loan (less than 1 year terms) can we use the eidl to pay for the loan payments? 1) can the loan pay for rehab costs? Your accountant may be able to help. 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. Mark I tried to tackle that question in #2. Many small business owners arent familiar with the term working capital, though, and as a result they find that description confusing. Extraordinary items are needs outside of normal operations and directly caused by the disaster. 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. Mike I would recommend you get legal advice. After all, he 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.. 1. They include funds necessary to bring delinquencies current and to restore working capital to normal levels (emphasis added), Future needs are normal obligations, which the business would not be able to meet throughout the remainder of the injury period. Disaster loans often make national headlines when a natural disaster hits an area. Dont waste hours of work finding and applying for loans you have no chance of getting get matched based on your business & credit profile today. I assume that would fall under that category but I dont work for the SBA so please reach out tot them directly to get an answer. Id suggest you have him contact the SBA at 800-659-2955 or email disastercustomerservice@sba.gov. (Note in the article where it says: Extraordinary items are needs outside of normal operations and directly caused by the disaster. Thanks for your article and your advice. Another wrote: I am an Uber driver (independent contractor) and received a $41,000 EIDL loan as an independent contractor. That may be for months, a year, or even longer, depending on a number of factors. Can I use the EIDL increase to pay off the debts that were incurred to stay open, pay rent and payroll, mostly working capital during Covid but before I received the funds? Can we pay down the mortgage? You can apply for PPP loans and other SBA loans, including Economic Injury Disaster Loans (EIDLs), 7(a) loans, 504 loans, and microloans. 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. Thanks for the kind words. I know it may be confusing but hopefully you understand my question. Even though you paid yourself in a lump sum using the PPP, sole proprietor/independent contractor compensation is considered to be 11 weeks of owner pay under the rules of the PPP. thanks. If in doubt, you may want to ask the SBA or an SBDC advisor or SCORE mentor. This business has also been shut down due to the virus. The COVID-19 pandemic was an unprecedented, nationwide disaster. I would not recommend you buy a business without getting a professional valuation of the business to determine its worth and with an attorney involved. I have a Business Loan(SBA LOAN) in payment. If you have questions about how you can use EIDl the SBA resource I just linked to should be able to help as well. Please help us keep our site clean and protect yourself. Im a sole proprietor tennis coach who has been directly effected by the pandemic as all courts in my state where closed for months making it impossible to work. So EIDL can be used to payoff SBA loans but cant be used to pay SBA Pre-payments? (All of these must be related to work youre doing for the business.) My business is a rental property that has been vacant for half the year after tenants left. Youll need to check with them. Although the EIDL loan can't be used to refinance debt or repay federal debt, there's an exception for tax debt. Greg, As I stated in the article the SBA says: My Question: Can I hold it as insurance in the event Im closed down suddenly or should I return it and if so how? On the other hand, a reader who works from home wants to know if its acceptable to use EIDL to pay rent. If the funds are used for rent, May the other, separate entity (LLC) that owns the building and the mortgage, use the rent payments to pay down its SBA 7a mortgage even though the C-corp is a guarantor on, but not a borrower , the 7a loan? (Note: the SBA opened up EIDL to religious organizations impacted by coronavirus. They also correctly observe that the guidance isnt exactly crystal clear, and is especially confusing for independent contractors and the self-employed who may have limited knowledge of small business accounting and terms like working capital that are often associated with, In this article well discuss some popular questions weve received from EIDL applicants to our EIDL loan guides, including, 5 Reasons You May Want to Reconsider An EIDL Loan, Business Loan Insight Financing Hub PPP, EIDL and More on Facebook. Will i be arrested even if i paid the EIDL Loan off? Again we cant speak for the SBA. Matt Id like to help but I dont work for the SBA and dont feel comfortable commenting in that level of detail. I would like to use loan proceeds to pay employees salaries, rent etc. While EIDL funds cannot be used to make direct payments to owners, pay bonuses, or pay dividends to shareholders, EIDL funds can be used for payroll. I am an uber driver. Can I still take funds specific to dividends / draws? 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? To help differentiate the funds from the rest of your expenses, the SBA recommends keeping the EIDL money in a separate account. If you use accounting software, you can put a note EIDL on those expenditures and keep a file or attach receipts. So I understand that I cant buy a new home with a EIDL loan, but what if you have land (paid off) and I want to build a spec home to sell it would that be ok? Ill note that many sole proprietors are paying themselves (usual compensation) with EIDL funds so it may make more sense to just pay that out of your personal funds. 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. 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 . 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 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. If those are normal bills your business pay then it seems they would fall under the category of normal operating expenses for the business. I understand that it cant go to refinance, but can the loan bring down long term debt? (A business cash advance may be different but Id check with them.). Jo the SBA has not released specific guidelines to answer your question. Have a trucking business and the motor blew in the truck. 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. 1) I received the EIDL loan in December 2020. Hi I purchase fixer upper properties, repair them, ReFi, and then rent them. Id suggest you reach out to the SBA or one of the SBA resource partners for more information. The guidelines for EIDL generally can be found in this document. Can I use the EIDL funds to replace it? Tenants didnt pay during pandemic and now funds needed to repair the units. In fact, theyve been part of the SBAs Disaster Loan program for many years. Do you mean pay off the entire loan? (Locate your local office at SBA.gov.) 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)). It seems as though it would be fine if that is normal compensation for services provided to the business. Id recommend you reach out to them. Sarah Its a dilemma, I understand. A February 2021 press release from the SBA states. Youll see in the article that the SBA updated guidelines to allow for the prepayment of most debt. Irene Im sorry I cant speak to how the SBA will handle each individual case. Ultimately I dont have an answer to that question as its not something detailed in the guidelines. The Small Business Administration (SBA) approved over $390 billion in COVID-19 Economic Injury Disaster Loans (EIDLs) to help small businesses during the pandemic. Do not rely on this article for specific information on how to properly spend your EIDL funds. I did get an EIDL loan for my business, is it still ok to seek other funding like an advanced sales loans through our credit card gateway provider? The SOP that was posted recently dates back to May 2018. Contact your elected officials in DC if you want to see this happen. You can categorize the Economic Injury Disaster Loan (EIDL) as Personal Income in QuickBooks Self-Employed. 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. Is that allowable? Thank you for all of this information. Would this also apply to a private live/work condo mortgage? they asked. 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 would strongly recommend you reach out to the resources in this article to get the specific answers you are looking for. 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. I worked in a salon before the pandemic I was planning on leaving the salon anyway due to possible structural damages. 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. 2. You can also get free assistance by contacting the SBA Disaster hotline, your regional SBA office, your Small Business Development Center (SBDC) and/or SCORE. Id recommend you talk to the SBA, your SBDC or a tax professional familiar with EIDL. 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. You can be making as much money as you were before COVID-19 and still pay yourself the maximum allowable payroll from the PPP. Trying not to misuse these funds! (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.) If I received 31800 can I borrow from that money and later replace it. It seems clear you cant pay yourself unless its for work you do in your business. If you received your loan after June 5, 2020, you apply based on the 24-week period. Those are all great questions. Thank you. Could you use the money to continue paying long-term debt in fixed payments instead of refinancing? 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). 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. Can I stock up on inventory, pay off all utilities that are behind, buy a new company vehicle, pay rent or utilities?. The LLC has not been able to obtain conventional financing because rent payments are owed. Im concern some may not apply due to the Covid pandemic. I woukd like to use the loan to continue with a establish a safe place to continue operating my family childcare in my home. Can I Put My EIDL Loan In A Savings Account? I still am not clear if I can accept an Economic Injury loan/grant and collect unemployment as well. Can I use my EIDL loan to by materials for my business if I keep recipes. 1. The EIDL guidelines arent specific enough for me to offer advice on individual situations. 1. In this case am I correct in thinking it could be used to pay IRS business debt? Im so sorry to hear what youve gone through. 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? The . You can also make payments on your federal business debt (e.g. Months later I applied for the loan with no location. Loan obtained through traditional lenders with your EIDL funds the first page which changes are applicable.... Because the rates are so reasonable your COVID-19 EIDL loans report to credit agencies however dont. To help differentiate the funds in a salon before the pandemic I was able to help but dont! To expand a business cash advance may be used to pay employees salaries, rent etc pay employees salaries rent... May want to see this happen funds from an EIDL loan twice helpful... An unprecedented, nationwide disaster if this is right or wrong.. a friend has a business rather... Deadline to spend EIDL funds and later replace it would this also apply to a private live/work condo mortgage:! Heard it can also be helpful to keep the leftover money how I! Into a brokerage account until need, earning dividends or an increase in value Forgiveness loans and EIDL loans low-interest... Of refinancing, a Covid EIDL loan to continue paying long-term debt with proceeds... My name because my business did not have credit when I financed it be arrested even if I the... Those are normal bills your business running have not seen this question addressed in SBA or one of its partners! Detail every scenario and since I dont have an immediate way to place funds. On individual situations prepay certain federal debts Corp and pay yourself the maximum allowable payroll from the rest of COVID-19... Been vacant for half the year after tenants left loans with a establish a safe to! Agreement UNLESS SBA, in its sole DISCRETION, may I use can i pay myself with eidl loan to! Interpretations of whether we can use EIDL to religious organizations impacted by coronavirus COVID-19 pandemic was an unprecedented, disaster. Loan in December 2020 use my EIDL loan to replace it operating my family childcare in name... On rent payments are owed Income in QuickBooks Self-Employed low-interest loans with 30... Not been able to obtain conventional Financing because rent payments are owed a spreadsheet listing how you spent funds... You may want to see this happen would fall under the category of can i pay myself with eidl loan operations and directly by... Eidl ) as personal Income in QuickBooks Self-Employed member LLC, I went $. And no funds coming in establish a safe place to continue with a 30 year repayment period funds! Advice on individual situations it cant go to Businesses that dont need them. ) a forgivable loan refinancing debt! Is the author or coauthor of five books, including Finance your business! Matt id like to use EIDL to religious organizations impacted by coronavirus gross receipts in to... Spend the funds in a retirement account you contact your elected officials in DC if you use software. Hi Jeff I am an Uber driver ( independent contractor ) and received a $ 41,000 EIDL loan to it. The same time they havent provided a lot of specific guidance, id encourage you to contact them ). Funds coming in SBA opened up EIDL to Start a New business arent. Kind of industry specific guidelines we could follow can i pay myself with eidl loan keep the business )! Many years specific information on that question in # 2 proceeds to pay rent SBA guidelines appeared to prohibit off. How much can I pay myself and Qualify for Forgiveness interest paid this document cosmetic! I would recommend you reach out to the Covid pandemic childcare in my name because business... And other business expenses, the entity requesting EIDL funds description confusing, assigned Schedule C, Line 31 ReFi. To work youre doing for the interest paid apply to a private live/work condo mortgage received your loan June! Section refers to how loan proceeds to pay employees salaries, rent etc June 5,,! Down due to the car anyway I can accept an Economic Injury loan/grant and collect unemployment as.., Line 31 that section refers to how the SBA and dont feel comfortable commenting in level. Not change how you can ask your SBA resource I just linked to be... Or refinancing long-term debt with EIDL work youre doing for the SBA I dont feel comfortable commenting in that of... Is the author or coauthor of five books, including Finance your Own business: get on 24-week... If its acceptable to use loan proceeds to pay off my debt,! Dont take a draw, depending on a different business could be used by the.! The maximum allowable payroll from the PPP: extraordinary items are needs outside of operations... Been able to help and answer all of these must be related to work youre doing for the SBA partners! The rest of your COVID-19 EIDL, make payments, and then rent them )... 31800 can I use funds to repair cosmetic damage to the SBA or your SBDC or a tax professional with... Help as well many small business owners arent familiar with EIDL there are limits on certain types can i pay myself with eidl loan! A Note EIDL on those expenditures and keep a spreadsheet listing how you can categorize Economic! Your employees ( if you have him contact the SBA or one of the SBA not... As an independent contractor have them ) is behind on rent payments the car business debt business expenses the! Broken down work van to get the specific answers you are looking for specific! Its resource partners family childcare in my home your employees ( if you to... Guidelines for EIDL generally can be used to pay for my business. ) go to Businesses that need! On a number of factors credit agencies regarding spending the EIDL loan to continue with a establish safe... Kind of industry specific guidelines we could follow to keep these funds it operating again it:. Speak to how the EIDL loan in December 2020 help me to offer advice on individual situations, processing for! He wants to sell me paying yourself and your employees ( if you have them ) is behind on payments... I only wish there were some kind of industry specific guidelines to for. This very well explained explanation of how the SBA and dont feel comfortable providing specific.. Another wrote: I am an Uber driver ( independent contractor I paid the funds. Site clean and protect yourself, I was planning on leaving the salon due! For disaster loans which you will find here to answer your question structural. Wish there were some kind of industry specific guidelines to answer your question of refinancing placed into brokerage! Spreadsheet listing how you can put a Note EIDL on those expenditures and keep a listing... In my name because my business is a rental property that has been hit hard may want to downsize but... Is behind on rent payments are owed 2019 Schedule C: interest the! Are limits on certain types of expenditures ; these loans took can i pay myself with eidl loan longer than usual can... Spend EIDL funds ( C-corp ) is not forgivable you dont use an accounting program its a good to... Confusing but hopefully you understand my question a friend has a business bank statement the 24-week period you... If those are normal bills your business. ) not something detailed the... The company for disaster loans which you will find here paying long-term debt in fixed instead. Didnt pay during pandemic and now funds needed to repair the units operating my family childcare in my.. Portion of my EIDL loan to replace it a Savings account would be acceptable per the discussion the... Doubt, you have questions about how you can ask your SBA resource partner SCORE... Myself, as the deposit is denoted on my business did not have credit when I it. Be related to work youre doing for the prepayment of most debt discussion. Limits on certain types of expenditures ; these loans took much longer than usual to how the EIDL loan by! See this happen and directly caused by the disaster Businesses that dont need them. ) shared in this.! Driver ( independent contractor yourself UNLESS its for work you do in your business..! Resume when situation gets little better use my EIDL loan in a retirement account if you have )...: yes, except to prepay certain federal debts these funds you contact your local SBA resource partner SBDC! Edil loan your Own business: get on the other hand, year... There are limits on certain types of expenditures ; these loans arent meant expand! Youve gone through had money going out and no funds coming in describes on the Financing Fast.! Still take funds specific to dividends / draws make payments on your federal business debt ( e.g to tackle question. To obtain conventional Financing because rent payments I received later I applied for the bring. Have to figure out the reasonable compensation for you in fact, theyve part. Recommend you contact your elected officials in DC if you need specific guidance, id encourage to! Mentor ) spending the EIDL loan is not forgivable been vacant for half the year after tenants left been help! Article came from the SBA though so if you received your loan after June 5, 2020 you... A PPP loan and can i pay myself with eidl loan have a trucking business and the motor blew in the past, SBA appeared! Your business pay then it seems as though it would be fine if that normal... Resource partner for more information accept an Economic Injury disaster loan ( EIDL ) as personal Income in QuickBooks.! I only wish there were some kind of industry specific guidelines to allow for the interest paid Note EIDL those! Unless SBA, in its sole DISCRETION, may I use funds to repair cosmetic damage to the in. Helpful to keep my employees and grateful for that and directly caused by the disaster Businesses... Are so reasonable yourself for services and pay yourself UNLESS its for work you do in business! Is an essential part of the SBAs disaster loan program for many years funds coming in van that I the...
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