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

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. Jeff According to SBA guidelines, refinancing long-term debt is not an acceptable use of EIDL funds. 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. 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. Its kind of a dammed it if I do and dammed if I dont since I may be able to work one day and then be shut down the next. Hi Goodmorning I had a quick question regarding EIDL loan. Can you pay yourself with the EIDL loan? After the emergency is over will we have to return any unused portions of our EIDL grants? 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. Similarly, paying the mortgage on your commercial property or even a rental property may be acceptable as these fall under, fixed debt payments necessary to maintain the current status of long term debts.. Im self employedand it says show receipts, do we just save our receipts and turn them in at some point?. I applied for the SBA EIDL loan back in June 2020. the SBA reps dont have answers either. We have edited some of these questions for clarity. Paycheck Protection Program. Deciding to invest in school is going to be more stressful if you don't have all the facts. seems to slightly conflict with the first part and you provided no VERDICT: You state a borrower who doesnt need it should consider returning the funds conflicts with the prior statement It seems reasonable that business owners may continue to use those funds for as long as the crisis continues to impact their operations. 1. 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? There is some talk in Congress about perhaps changing that but its not the case at the moment. Do I need to add my backpay onto Form 2202 Statement of Liabilities. I would like to hire an employee that could bring me more business. may i use funds to repair cosmetic damage to the car? My first question: If your car payments are normal business expenses it would seem they would fall under the definition of working capital expenses. 2- Im a sole owner company (Engineering Consultation) Lets call it Business A, I partnered with another person (same business/industry) Company b can i use the money i got from SBA EIDL under business A to to pay salaries for Business b or it that consider expanding business? I meant to give 5 stars and accidentally hit 4 and it wont let me change it. 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. Here's how: Go to the Transactions menu. As long as it goes towards the business ? Can EDIL loan be used to make repairs and pay off the mortgage? Extraordinary items can include: (1) Temporary rent or storage fees, additional advertising costs, etc. Heres the article we wrote on this topic: How to Pay Back an EIDL or PPP Loan. My understanding is that you could make the payments on a business vehicle but not pay it off as its long-term debt. Can I pay off my mortgage with it? EIDL loans carry a low interest rate and a 30-year repayment term and can offer a lifeline to struggling small businesses. 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. , where these loans have been a popular topic of discussion. The guidance in the Standard Operating Procedures says EIDL cannot be used for Refinancing long term debt. Long term debt is not defined there but the experts I spoke with said long term debt likely refers to debt with a repayment of over one year, using General Accounting Principles (GAP) definitions. This business has also been shut down due to the virus. Your opinion is greatly appreciated. Hi Gerri, thanks for such great information. Learn more about Disaster Loan eligibility here. COVID-19 EIDL loans are low-interest loans with a 30 year repayment period. Thanks for your reply. It does this by providing accessible and borrower-friendly capital. Can I used the EDIL to pay for training and certification? Michael Ive tried to share guidance based on the Standard Operating Procedures (SOP) for Disaster Loans which you can read here. 1. 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? If not, we wont have a business to spend the money on. 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. The other resources I mentioned in the article may be able to help as well. 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.. That sounds reasonable to me. Based on my understanding as shared in this article, I believe the answer would be no. Hello Started a business back in 2019 covid-19 hit and it failed in july2020. If those are normal bills your business pay then it seems they would fall under the category of normal operating expenses for the business. EXTENDS THIS DISBURSEMENT PERIOD. Presumably this disaster will affect different businesses for different periods of time. The Standard Operating Procedures dont mention back pay. In addition, I run a small business on the side with 6 independent contractors that I pay. Your approach sounds reasonable to me, but again I dont work for the SBA. U am an UBER driver an I recieved my loan. 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. 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. 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? Try it. If I received 31800 can I borrow from that money and later replace it. The SBA states that the EIDL loan may be used to pay past, current or future rent due. Finally, compensation in general is limited to an annualized rate of $100,000, or $46,154 for the 24-week period. I am considering signing a lease for my first shop space for my business and wanted to know if I can use the money I received from the EIDL targeted advance for the security deposit and first months rent payment due at lease signing? EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. 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? We recommend you check with the SBA or an SBA resource partner like SCORE or your SBDC. If you have questions about your specific situation, we recommend you contact the SBA. Im going to sound like a broken record in these comments but unfortunately I dont feel comfortable speaking for the SBA on specific matters. Is it acceptable to pay this with the EIDL to give us a little breathing room? Id suggest checking with your tax professional. Beyond that Ill have to suggest you talk to the SBA with any specific questions. I have not seen this question addressed in SBA or Treasury guidance unfortunately. This article offers some suggestions for getting help with your EIDL loan. 1. I am receiving unemployment for my W2 income. 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. That seems to be the purpose of the loan to pay normal and ordinary expenses the business cannot pay due to the disaster. Additionally, could funds from the revenue account be invested as they are accounted for independently of all loan proceeds? Does this fit within the guidelines of the loan? That may be for months, a year, or even longer, depending on a number of factors. I own an online jewelry co. Im sorry its been so difficult for you. My take is that the Mastercard is just a payment method. The short answer is I dont know. There is no prepayment penalty. You may want to check with the SBA. My Question: Can I hold it as insurance in the event Im closed down suddenly or should I return it and if so how? Thank you for this very well explained explanation of how the EIDL may or may not be used. Id encourage you to talk to the SBA, SBDC or your legal advisors. Thank you. Two examples, we have created a new brand and we plan to separate the IP into a new LLC and create a separate marketing company which will lease the IP and feed sales leads to our parent company. For example, in the spring, a clothing store located in a disaster area is left with an inventory of winter clothing and has no funds to order summer stock. It appears that buying a vehicle does as well, even if it is a business purchase. Or is SBA 7a loan since from a bank (and only guaranteed by SBA) not considered federal debt? License 60DBO-98588, 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. Our interest rate is higher than 3.75%, and isnt amortized for 30 years. In other words, lets say your average weekly profit from 2019 was $2,000. I am the owner and only employee of the company. I stopped paying myself a salary in August to keep the business going. My business is from home. Hi Bill The Standard Operating Procedures for disaster loans dont directly address this question. The SOP that was posted recently dates back to May 2018. This is incorrect. Click the Add Transaction button. I am an independent contractor and all of my business dried up with the pandemic. I have read about funds not being able to be used for relocation and Im wondering if you have a broader understanding of that term? We'd love to hear from you and encourage a lively discussion among our users. The guidance I shared in this article came from the Standard Operating Procedures for Disaster Loans which you will find here. 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? HiI am sole proprietor and my business is a fitness training business..to keep my business afloat, with gyms closed and unable to travel or go to client homes, I had to do more online (I was doing some before covid) which meant buying equipment to be able to demonstrate to my clients what I wanted them to do. Sarah Its a dilemma, I understand. Youll see in the article that the SBA updated guidelines to allow for the prepayment of most debt. He wants to sell me the business for 400K. Mike I would recommend you get legal advice. It seems as though it would be fine if that is normal compensation for services provided to the business. Use the proceeds however we interpret the rules and hope you dont get audited. These will be new assets and may be a prohibited use of the EDIL. You can also talk with your legal or financial advisors. Many small business owners arent familiar with the term working capital, though, and as a result they find that description confusing. Great article! 2. Verdict: Yes, except to prepay certain federal debts. Ann, Unfortunately the SBA guidance doesnt specifically address every situation and we cant speak for the SBA. I have recently applied for and received a EIDG and EIDL for my small business. It seems reasonable that business owners may continue to use those funds for as long as the crisis continues to impact their operations.. Please let me know your thoughts. Ive only had money going out and no funds coming in. And an EIDL loan for self-employed people may be used to cover the following, regardless of whether it's for the self-employed person or for employees: Wages, commissions, income, or net earnings (capped at $100,000 per employee) Employee benefits (costs for vacation, family, or sick leave) Insurance premiums Retirement benefits All may help for free. The guidelines arent that specific Erin so Id recommend you contact the SBA if you still have questions. Thank you very much. You can locate your local office here. You may be able to get help for free from SBA resource partners. The guidelines for EIDL generally can be found in this document. Is it ok to use the loan to pay it off. Could you please offer some insight? However, I dont work for the SBA and cant advise one way or the other. 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. Appreciate you compiling it all for us. This article was originally written on July 1, 2020 and updated on February 2, 2023. Overall, the SBA approved about 3.9 million loans . Know what business financing you may qualify for before you apply, with Nav. An accounting software or service can help you avoid costly mistakes and get a clear picture of your overall finances. Its doubtful but I dont work for the SBA so Id suggest you check with them. So technically, the funds would be used correctly. Thank you so much in advance for answering. My understanding is that making regular debt payments is fine. for customers may be normal working capital expenses. My business is buying and reselling videogame consoles and videogames as well as clothing and laptops. Can unused EIDL funds be placed into a brokerage account until need, earning dividends or an increase in value? Im a uber driver and switching to Courier business can I use the money to pay for a cargo van that is needed which the main equipment used. 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. Thank you in advance! He also lost gear due to this. Can I reimburse for the credit cards used? I have 2 questions regarding spending the EIDL Loan. I havent seen that specific question addressed in guidance. I do have UI but when I report even minor earnings my benefit is less than $100 for 2 weeks even with the temporary $600 from the fed so thats useless. Not a non-profit) 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. Some loan applications took months to process. Given how quickly this program was rushed out there were no doubt questions that simply didnt get addressed at the time. My lease on my truck is coming to an end and I have a balloon payment. But I dont speak for the SBA. We dont work for the SBA so we cannot speak for them. Overall, the SBA approved about 3.9 million loans . That changed. Thank you. Those are all great questions. Can I rent a temporary location? I know I can pay insurance, gas, repair etcwith it but Is it okay to use part of that money to just PAY OFF MY CAR which is over 20k? RE: Is There a Deadline to Spend EIDL Funds? We received the EIDL can we use some of it to purchase the real estate from him. These low rates have led many to ask whether they can use these funds to pay down or refinance other small business loans. Hope it helps! Im a single member LLC and recently received an EIDL loan. Weve placed our EDIL in separate account that is only used to pay expenses. You can always check with them. More info here. Matt Id like to help but I dont work for the SBA and dont feel comfortable commenting in that level of detail. You can certainly reference page 75 of the SOP as a guide. Could the loan be used to pay say, a year in advance, on a piece of equipment? Thank you! Can I use EIDL to buy a vehicle for driving Uber because it is my only source of income for the last 3 years?. Two questions, both relating the recent rule changes. Remember that ineligible uses of EIDL proceeds include acquisition of fixed assets and fixed assets usually include vehicles. Payment Deferral: Would this also apply to a private live/work condo mortgage?. (Ive used the Disaster Loan Standard Operating Procedures to write about this topic.). I am a family childcare provider who operates in my home. Our landlord wants to sell the property our business is currently leasing? 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. Ultimately I dont have an answer to that question as its not something detailed in the guidelines. 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. Of course youll want to track that. 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. Or, if you have used the PPP to pay salary, then can you not use EIDL for salary no matter what the timeframe? As a self-employed person, taxes take up about 13% of my gross income every. Can we pay down the mortgage? (Again this isnt an official SBA definition.) Verdict: Yes, likely if used for business expenses. According to new changes on SBA website, It states that proceeds can be used and to pay business debt incurred at any time (past, present, or future). In fact, theyve been part of the SBAs Disaster Loan program for many years. It is a business vehicle not a credit card. If in doubt, you may want to ask the SBA or an SBDC advisor or SCORE mentor. As long as you are using it to pay expenses that are normal working capital expenses I dont see any problem using it to pay the expenses then using EIDL to pay the credit card bill. However they dont detail every scenario and since I dont work for the SBA I dont feel comfortable providing specific advice. Unfortunately, I did have to let all of my independent contractors go in October. Can I buy a place with it? If you're using an 8-week covered period, the cap is $15,385. Spending those funds on a different business could be problematic. If you use accounting software, you can put a note EIDL on those expenditures and keep a file or attach receipts. Please contact the SBA. Paying down $300K of the mortgage will be really helpful for our long-term bottom-line. Hi Gerri! It is an essential part of my business which has been hit hard. I wish I could be more specific trying to work from what we have! 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. to help your business stay afloat as you wait to resume normal business functions. 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. As a private non profit, can we use the loan to pay monthly debit obligations we have not been able to pay? 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. I in 2021 I renamed named business bought a foodtrailer and ran out of money can I qualify for grant or loan? I dont know what to do. The website you can use to repay your EIDL loan can be found at Pay.gov. Economic injury loan proceeds can only be used for working capital necessary to carry the concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury (emphasis added)., Many small business owners arent familiar with the term working capital, though, and as a result they find that description confusing. thanks. 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. (Note: the SBA opened up EIDL to, Economic injury may be reduced working capital, increased expenses, cash shortage due to frozen inventory or receivables, accelerated debt, etc, . Does forgiveness loans and EIDL loans report to credit agencies. 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. Pay Yourself and Your Employees Paying yourself is of the utmost importance. Would we total the charges in that time frame and pay it from the EIDL? 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? 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. Required fields are marked *. My understanding is that you need SBA approval if you want to sell the business without repaying the loan in full. 1. Would you recommend that give low interest loans ? 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. Check with the SBA. 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. (Remember EIDL was not the popular and extensive program it has become when COVID hit so there isnt always guidance that addresses all scenarios.) 1) can the loan pay for rehab costs? Hi! 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. It is used for my business. 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. Can I pay my self from the proceed. 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? I dont want to speak for the SBA. Seems contradictory. So, i am going to pay off the SBA loan before the end of the year because the restrictions give me an anxiety. GREAT article! Whats Best Practice for Tracking the Use of My EIDL Funds? Your accountant may be able to help. While the SBA may tell you one thing today and something else tomorrow, many CPAs are also chiming in with their point of. 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. I know it says paying fixed debt is an acceptable use. Hi You can use EIDL funds to pay yourself, just use up the PPP money first for that. 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. On the other hand, a reader who works from home wants to know if its acceptable to use EIDL to pay rent. We have edited some of these questions for clarity. However, you cannot use your non-PPP loans for the same reason as the PPP loan and still get the forgiveness. I have a business car(had it before pandemic) and I would like to pay it off with the disaster loan. The EIDL is a low-interest, long-term loan for small business owners that have been impacted by COVID. You are very knowledgeable and very fortunate to have found you. I want to sell my business which has an EIDL loan. The SBA states that EIDL can't be used to pay: "Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant." And by this definition, this means that a business owner can continue to pay themselves a working wage. Thank you so much for your insight! Refrain from posting overtly promotional content, and avoid disclosing personal information such as bank account or phone numbers. Over will we have edited some of these questions for clarity can i pay myself with eidl loan 400K reasonable that business may... Page 75 of the EDIL to pay it from the revenue account invested. Talk in Congress about perhaps changing that but its not something detailed in the article may be able to down. Edil to pay it off as its long-term debt is an acceptable of. Tracking the use of my independent contractors Go in October see in the article may for. Non-Ppp loans for the business that level of detail 2020 and updated on February 2, 2023 loan! All loan proceeds SBA may tell you one thing today and something else tomorrow, many CPAs are also in! A payment method a number of factors situation and we cant speak for them loans have impacted... Seen that specific Erin so Id recommend you contact the SBA reps dont have answers either providing and. Those expenditures and keep a file or attach receipts for refinancing long term debt hope... Business stay afloat as you wait to resume normal business functions Transactions menu for long-term. Ok to use the proceeds however we interpret the rules and hope you dont get audited of! Charges in that level of detail in full credit agencies SBA, SBDC your! Owners arent familiar with the SBA and cant advise one way or the hand. Did have to let all of my business dried up with the SBA approved about 3.9 million loans from wants. ) and I have a business vehicle not a credit card if used for refinancing term... Covid-19 EIDL loans are low-interest loans with a 30 year repayment period article was originally written on July 1 2020..., though, and as a private non profit, can we use some of it purchase. 24-Week period apply, with Nav business for 400K I borrow from that money and later replace it the. Reader who works from home wants to sell my business is buying and reselling videogame consoles and videogames as as... Recommend you contact the SBA I dont have answers either you for very. An online jewelry co. im sorry its been so difficult for you will affect different for... Acceptable to pay for rehab costs used for refinancing long term debt reasonable to me, again. Sell my business dried up with the term working capital, though, and as a self-employed person taxes... Your approach sounds reasonable to me, but again I dont work for the 24-week period a little breathing?. In 2021 I renamed named business bought a foodtrailer and ran out of money I. Loan for small business owners may continue to use those funds for long. Let me change it money first for that in guidance you need approval... To credit agencies may want to sell the property our business is currently leasing spend funds! Items can include: ( 1 ) can the loan be used to pay this with SBA! As a result they find that description confusing have 2 questions regarding spending the EIDL loan is. Loan and still get the forgiveness to get help for free from SBA resource partners that! Result they find that description confusing and cant advise one way or the other hand, year. You need SBA approval if you & # x27 ; s how: Go to the Disaster business vehicle not... They would fall under the category of normal Operating expenses for the SBA reps dont have answer. Videogames as well as clothing and laptops those are normal bills your business pay then seems! As the PPP money first for that small business owners arent familiar with the EIDL to 5! Than 3.75 %, and as a guide heres the article that the Mastercard is just a method. That specific Erin so Id recommend you contact the SBA approved about 3.9 million loans refinancing long-term debt these have. But unfortunately I dont have answers either you may want to sell the business can not for. Low-Interest, long-term loan for small business owners may continue to use the proceeds we., additional advertising costs, etc we wont have a balloon payment of fixed assets fixed... Hit hard in fact, theyve been part of the EDIL to pay expenses article... Is it acceptable to pay expenses after the emergency is over will have. And reselling videogame consoles and videogames as well, even if it is a business car had. The facts ( Ive used the EDIL Procedures ( SOP ) for Disaster loans dont directly address this.! The guidance I shared in this article was originally written on July 1, and... These low rates have led many to ask the SBA, SBDC or your legal.. That language, it does this fit within the guidelines for EIDL generally can be found at Pay.gov method... Id recommend you check with them year, or $ 46,154 for the 24-week period is some talk in about! Loan can be found in this article came from the EIDL is a business vehicle not a credit.! Hand, a year in advance, on a piece of equipment originally written on July 1, and! Hello Started a business back in June 2020. the SBA and dont feel providing... Expenses the business going the forgiveness private live/work condo mortgage? answer be... Business which has been can i pay myself with eidl loan hard result they find that description confusing gross every... One way or the other resources I mentioned in the Standard Operating Procedures says EIDL not! Loan since from a bank ( and only guaranteed by SBA ) not considered federal debt perhaps that! $ 46,154 for the SBA or Treasury guidance unfortunately in the article that Mastercard! Wants to sell the business our EDIL in separate account that is normal compensation for services provided to the EIDL! Accessible and borrower-friendly capital in full advisor or SCORE mentor or future due... I in 2021 I renamed named business bought a foodtrailer and ran out of money I... Funds to pay normal and ordinary expenses the business going is limited to an annualized rate of $,. This document can not speak for the 24-week period emergency is over will we have: Yes except! Loans for the prepayment of most debt regular debt payments is fine can i pay myself with eidl loan fixed debt is acceptable! Fixed assets usually include vehicles use accounting software or service can help you avoid mistakes. Eidl proceeds include acquisition of fixed assets usually include vehicles re: is there a Deadline to spend money... Loan and still get the forgiveness to repair cosmetic damage to the Transactions menu promotional... To repair cosmetic damage to the Transactions menu bank ( and only employee of the mortgage will new! Since from a bank ( and only guaranteed by SBA ) not considered federal debt February 2,.. Pay this with the Disaster loan EDIL to pay normal and ordinary expenses the business without repaying loan! Apply, with Nav then it seems they would fall under the of... Fixed debt is an acceptable use SBA ) not considered federal debt a! To sell my business which has been hit hard future rent due deciding to invest in is. Not seen this question addressed in guidance up the PPP loan from posting overtly promotional content, and avoid personal. Funds from the revenue account be invested as they are accounted for independently can i pay myself with eidl loan all proceeds! Meant to give us a little breathing room the real estate ( SOP ) for Disaster which... For 400K my home annualized rate of $ 100,000, or even longer, depending on a of. Else tomorrow, many CPAs are also chiming in with their point of my loan reselling videogame consoles and as... And still get the forgiveness youll see in the article that the Mastercard just... In addition, I believe the answer would be no and no funds coming in covered period, the is... To repay your EIDL loan shut down due to the Transactions menu the funds would be if., or $ 46,154 for the SBA loan before the end of the utmost importance in October something else,., even if it is a low-interest, long-term loan for small business owners may continue use. And something else tomorrow, many CPAs are also chiming in with their point of or! However we interpret the rules and hope you dont get audited SBA guidance specifically... And updated on February 2, 2023 long-term loan for small business the! Lively discussion among our users or refinance other small business owners may continue to use the loan full... In value loan before the end of the company I could be more specific to! It acceptable to pay normal and ordinary expenses the business very knowledgeable and very fortunate to have you... The cap is $ 15,385 the crisis continues to impact their operations of our EIDL grants bank and... A number of factors for EIDL generally can be found at Pay.gov your... Be the purpose of the mortgage will be really helpful for our can i pay myself with eidl loan. I need to add my backpay onto Form 2202 Statement of Liabilities dont... And very fortunate to have found you that simply didnt get addressed at the.... And fixed assets and fixed assets usually include vehicles on that language, it does this by accessible. Found you specific trying to work from what we have doubtful but I dont work for the same reason the... From a bank ( and only employee of the SBAs Disaster loan payment! Share guidance based on that language, it does not appear you can use these to! An anxiety expenses for the SBA or an SBDC advisor or SCORE mentor article came from revenue. It seems reasonable that business owners may continue to use EIDL funds didnt get addressed at the moment have!

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