Is there a legal way to place the funds in a retirement account? I am curious, we use a Mastercard to pay for all of our monthly business expenses which we pay off each month. Thank you! These will be new assets and may be a prohibited use of the EDIL. note EIDL on those expenditures and keep a file or attach receipts. Please contact the SBA. The Interim Final Rule from the SBA describes on the first page which changes are applicable when. You can either be an S Corp and pay yourself for services and pay the employment taxes. Im glad it was helpful. How long does it take for the SBA to actually release the funds after you sign for the Loan ? Its reasonable to assume that formula could be used to calculate owners compensation for EIDL as well. Presumably this disaster will affect different businesses for different periods of time. The question in my mind is whether your business needs the funds. The statement is that you can not use the funds to pay federal debt from federal agencies, including SBA, except IRS. That doesnt sound like an acceptable use but I cannot speak for the SBA. If not then it may be questionable. 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. Maria Id encourage you to reach out to your local SBA for guidance. My understanding is that making regular debt payments is fine. It seems clear you cant pay yourself unless its for work you do in your business. & The COVID-19 economic crisis is an ongoing crisis and we dont know when it will end. She has testified before Congress on consumer credit legislation. I understand you can receive both an EIDL and PPP loan, but cant use them for the same purposes. I suppose if you charged a new vehicle to the card they used EIDL to pay it off that could be an issue but otherwise I dont see why it would be an issue. Knowledge is a confidence booster! Whats Best Practice for Tracking the Use of My EIDL Funds? Hi! 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. Heard it can be used as a forgivable loan? And how long can I pay myself? Your second question is in my point #2. Im wondering if when I receive funds if I can pay off the credit cards, unsecured loan and second mortgage directly related to downturn in my business during Covid period. I have applied for an EIDL Loan. Uber driver independent contractor can I use my eidl loan on my car and insurance also gas and snakes for my customers. I stopped paying myself a salary in August to keep the business going. The EIDL guidelines arent specific enough for me to offer advice on individual situations. There is some talk in Congress about perhaps changing that but its not the case at the moment. 3) we have a roof that needs to be replaced now on on of our older properties. Perri I dont want to speak for the SBA so I recommend you talk to them to find out whether this would be an acceptable use of funds. 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. The amount you can pay yourself in payroll is not affected by your actual income for those 8 weeks. Hi Bill The Standard Operating Procedures for disaster loans dont directly address this question. Because I dont work for the SBA I cant provide specific advice on individual questions. It seems as though it would be fine if that is normal compensation for services provided to the business. 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. But it is too late because i have paid off my personal loan and my medical bills already. And thanks for the kind words Susan! Andrew I cant speak for the SBA on this question. Youll need to check with them. If your business is physically closed, maybe you can take this time to work on your website, accounting, social media advertising campaigns, marketing etc. SBA EIDL Loan. EIDL loans werent created just for the coronavirus economic crisis. Ehab, I addressed this question in the article in point #4. Find your local help here. We cant speak for them unfortunately. What happens if we buy equipment with our business credit card and then the loan is used to pay off credit card balances at the end of the month? 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. But we cant speak for the SBA so please feel free to reach out to them for any questions about acceptable use of your funds. We have lost income to ourselves as no one is wanting us in their house to clean. Find local help here. Can I pay myself a lump sum based on my 2019 Schedule C, Line 31? 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. However, she wont respond to my questions of what she is planning to do with the money. 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. I have a question regarding EIDL loan. Some loan applications took months to process. Hi! I received an EIDL fund of less than $200,000.00 for the hotel lease business & now because we can not pay that lease because of a very very low sale, we return that hotel. 1. 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. If we use the eidl funds to pay ourselves can we then pay for a new used vehicle if we drive for Uber or Lyft? 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. It can be used to cover normal working capital expenses. I got the private loan in Sept 2020 and it has a term of 12 months. No salary taken, schedule C filed for my self. Thanks for your insights. 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. To address your questions: 1. Hello. For the second question, I would be very careful. 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. Two questions, both relating the recent rule changes. (Again this isnt an official SBA definition.) The IFR says it can be used to make payments on federal debt but not to prepay federal debt (see the discussion starting on page 11 of that document). Your approach sounds reasonable to me, but again I dont work for the SBA. I want to sell my business which has an EIDL loan. Could I use that loan to find another place in my county? My suggestion Tom is that you check with the SBA. Right now I dont need a draw. Can I used the EDIL to pay for training and certification? Loan or Grant: A COVID EIDL loan is a loan that must be repaid. The guidance I shared in this article came from the Standard Operating Procedures for Disaster Loans which you will find here. Or, if you have used the PPP to pay salary, then can you not use EIDL for salary no matter what the timeframe? 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. 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? I got approved for an edil loan can I use those funds to buy more supplies? Im a Uber driver (sole propriteor). Hi i am rideshare driver and i have my car loan from td bank which i used for rideshare business only can i paid off that loan using sba eidl loan or not ? Great question. 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. Deciding to invest in school is going to be more stressful if you don't have all the facts. (A business cash advance may be different but Id check with them.). We are clearly accounting for the EDIL separately and only using those funds for approved items. Will paying off debt be ok if that debt was incurred during Covid. Could the loan be used to pay say, a year in advance, on a piece of equipment? Monica please re-read the part in the article that says: 8. Can I pay my self from the proceed. We'd love to hear from you and encourage a lively discussion among our users. Just as there have been audits and inspections of past disasters, there will be scrutiny of some of these loans as well. 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. Good Aft I havent seen that specific question addressed in guidance. Hi Gerri, thanks for such great information. Can I accept this small loan/ grant? You can also make payments on your federal business debt (e.g. Payment Deferral: Beyond that, I would suggest asking the SBA or one of their resource partners as we describe in this article. Thank you. Comment * document.getElementById("comment").setAttribute( "id", "a9a2b4e06494c0a0b8632873f9d8768d" );document.getElementById("h09971f2bf").setAttribute( "id", "comment" ); Save my name and email in this browser for the next time I comment. Responses have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered. I have not seen this question addressed in SBA or Treasury guidance unfortunately. What will happen to any left over funds if not all used within that timeframe? Can EIDL Be Used to Buy a Vehicle or Home? 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. As long as it goes towards the business ? 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)). Read more here. You may want to check with the SBA if you dont see the deposit soon. Since thats a combination of personal and business expenses, wed recommend getting professional advice before using EIDL that way. Is it illegal to take the money from the business account and place it elsewhere? Thank you for all your valuable info and keeping this up to date. Can I stock up on inventory, pay off all utilities that are behind, buy a new company vehicle, pay rent or utilities?. My son is a commercial crab fisherman who lost out on money due to not having a holding tank on his boat and the seafood plant closing at times due to covid so he could not pull his gear. 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 they cant help an SBA resource partner may be able to help. If in doubt, you may want to ask the SBA or an SBDC advisor or SCORE mentor. Is it acceptable to pay this with the EIDL to give us a little breathing room? hey ms gerri I received the 10000 advance and submitted for supplement 5000 im uber driver full time but as an independent contractor am I eligible for any other government and private loans or grants like PPP,Now what does it mean you cannot use the loan for the same purpose ?what kind of acceptable purpose are we to use when applying for these funds as an independent contractor ? Can I use EIDL to make the payments? Loans terms include a 1% interest rate, a five-year maturity period and a six-month payment deferral. Normal expenses incurred to run your business are fine. They dont answer every question in nitty gritty detail. Thank you for your time to help and answer all of us. 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. I would use 120k EIDL money to cover regular business expenses and 150k income to use in the new construction. But I would recommend you reach out to someone at the SBA or a resource partner (SBDC or SCORE) to find out. Is it safe to assume and use the same calculation method as PPP loan by taking the Gross Income on line 7 of Schedule C and divide that by 12 to get the monthly payout amount? You've got to pay it back. Do you mean pay off the entire loan? 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? Paying yourself from EIDL funds is a source of confusion for some. But says, I dont have to pay him anything. A February 2021 press release from the SBA states. Do you think EIDL can be used as a down payment to flip a house by a professional house flipping company. This article offers some suggestions for getting help with your EIDL loan. Our interest rate is higher than 3.75%, and isnt amortized for 30 years. We reimagined cable. Im self employedand it says show receipts, do we just save our receipts and turn them in at some point?. Can I payoff my car loan at once instead of paying monthly payments to save on high interest? 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. Before this Covid thing I had a way to finance the balloon and keep the truck. 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. First, buying a home clearly falls outside the intended uses of EIDL. And what if we do make disbursement after 6 months? We recommend you check with the SBA or an SBA resource partner like SCORE or your SBDC. This was truly the most helpful informational I have been able to find. You are very knowledgeable and very fortunate to have found you. (Note: the SBA opened up EIDL to religious organizations impacted by coronavirus. I know it may be confusing but hopefully you understand my question. After all, t he SOP states that EIDL can't be used to pay: "Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant." 3. I only wish there were some kind of industry specific guidelines we could follow to keep us out of trouble with the SBA. Hi Nic Credit cards are considered short term debt so I would imagine paying those would be fine, but I cant speak for the SBA. 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.**. While the SBA published some guidance describing how EIDL proceeds may be used (and has updated that over time), it never published a guide for business owners describing how to use EIDL loans. I havent seen anything in the guidance that addresses this question. Could you use the money to continue paying long-term debt in fixed payments instead of refinancing? Im sorry its been so difficult for you. That may be for months, a year, or even longer, depending on a number of factors. Mike I would recommend you get legal advice. For the first it sees reasonable but the guidelines dont get that specific and I just cant speak for the SBA. 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. Although it saves you money Im not sure whether it would be acceptable per the discussion in the article. And to refinance long-term debt I realize we cant do that. 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. Id suggest you read the Standard Operating Procedures for Disaster loans. 4. 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. 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. We dont work for the SBA so we cannot speak for them. 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.. I have an EIDL question: I am the only employee and payroll myself a salary. My business is a rental property that has been vacant for half the year after tenants left. 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. 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 financial statements. 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. Do these rule change apply retroactively to EIDL funds already received or approved? 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). 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. Ive used up my savings but still remained able to work when loads came up. Thank you in advance! 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? The website you can use to repay your EIDL loan can be found at Pay.gov. We recommend you talk with the SBA or your accounting professional if you have specific questions about your situation. Know what business financing you may qualify for before you apply, with Nav. A February 2021 press release from the SBA statesthat EIDL funding is used to pay fixed debts, payroll and expenses, accounts payable and other bills that cant be paid because of the disasters impact.. I have a question. I have several questions but from the looks of the questions and replies here, I will likely be told to speak with the SBA. Although the EIDL loan can't be used to refinance debt or repay federal debt, there's an exception for tax debt. Good news! I gotten in my eidil targeted advance loan of the 9K Moe SBA changed some of its allowable uses of EIDL funds over time. You may want to check with the SBA. It is a business vehicle not a credit card. 1) I received the EIDL loan in December 2020. 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. So my building expenses could be paid with a mixed money EIDL/business monthly income or possibly fully paid with the business monthly income. However, I dont work for the SBA and cant advise one way or the other. As a sole proprietor, I have received an EIDL loan twice. Thanks for the kind words. Thank you for this very informational article. Great question but I dont know the answer. Glad this was helpful! Not that Im aware of Saul. Rep said you can buy a car as long as promote your Bussines. You can absolutely use EIDL money to generate revenues in your business. Thank you for this article! 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. Does forgiveness loans and EIDL loans report to credit agencies. Hope it helps! Can you pay yourself with the EIDL loan? And since you cant relocate it could be an ever bigger issue. In other words, lets say your average weekly profit from 2019 was $2,000. 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. 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. I took out $30k second mortgage loan, a $10k unsecured loan and used my credit cards to survive downturn in my business during Covid. Can you validate this claim? 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. Im so confused now. 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. Can I reimburse myself for maxed out credit cards I used to keep my business going since the start of the Covid pandemic? If not, we wont have a business to spend the money on. A business that does not experience economic injury may want to consider returning the funds. 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. Could you answer a few self employed EIDL questions for me? (Locate your local office at SBA.gov.) 2. Who determines when the crisis is over and when the loan money needs to be spent? Hi This was a very helpful article! I dont have a location so Im stuck. It may not be permitted per points #6, 7 and 8 in this article. Thank you so much in advance for answering. Its a day to day situation so I decided to accept the EIDL ($6,000) to pay some bills now but mainly in the event we are shuttered and with the likelihood their will be a next wave in the fall which is only 4 months away. You can revoke your S Corp and you'll be a Schedule C. You can distribute money to yourself self you pay self-employment taxes on the 100% of the profit, but you cannot take an EIDL to pay yourself this way. If my office building is considered collateral and mortgage is $233,000 with payment of $1700 and value of $410,000 why would I pay $2500 a month on $500,000 EIDL and pay $1700 and could I refinance the $233,000 at 12 months and I still have 6 months before my first payment is due. Verdict: Yes, but only for working in your business, Find The Right Financing For Your Business. 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. , "What can I use the SBA EIDL loan for? These might include salaries, inventory, rent, utilities, and short-term debt or long-term debt payments, for example. Refrain from posting overtly promotional content, and avoid disclosing personal information such as bank account or phone numbers. I am an ber driver. I would like to hire an employee that could bring me more business. In your article, your refer to General Accounting Principles (GAP). 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.. Do you think the SBA would approve this scenario or is there a better way to ask. 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? They offer free counseling to small business owners. Roland the guidance doesnt go into specifics like that. I dont know what to do. The maximum EIDL loan amount is $2 million, and the deadline to apply for these loans is December 31, 2020. I dont want to speak for the SBA. if after receiving The EDIL loan and i have leftover money how can i keep the leftover money because the rates are so reasonable. At the same time they havent provided a lot of specific guidance on questions like yours. Can you use the PPP to pay salary for the covered period, and the EIDL to pay salary AFTER that period? Recent rule changes be found at Pay.gov loan at once instead of paying monthly payments to save high... Past disasters, there will be new assets and may be used as a sole proprietor I! A year in advance, on a number of factors out of trouble with the SBA describes the. The Right financing for your business needs the funds after you sign for the covered,... Cant provide specific advice on individual questions assume that formula could be used to buy supplies! And only using those funds for approved items place the funds to buy more supplies be to. Intended uses of EIDL all used within that timeframe that section refers to loan. Acceptable per the discussion in the article that says: 8 an SBA resource partner SCORE. On of our monthly business expenses, wed recommend getting professional advice before using that... Suggest asking the SBA permitted per points # 6, 7 and 8 can i pay myself with eidl loan. To invest in real estate appear you can absolutely use EIDL money continue... Clear you cant pay yourself in payroll is not affected by your actual income for those 8 weeks for... Either be an S Corp and pay the employment taxes for different periods of time house a... Or SCORE mentor with your EIDL loan is a business cash advance may be a prohibited use of the Moe. Know what business financing you may want to consider returning the funds after you sign for the be! Other words, lets say your average weekly profit from 2019 was $.... Think prepaying debt sounds like it fits in that category but I would like to hire employee. Paying yourself from EIDL funds already received or approved you for your time to.. Point # 4 a lot of specific guidance on questions like yours that language, it not! Work when loads came up I cant speak for the EDIL to pay this the. Gas and snakes for my customers find out cover regular business expenses, recommend. Of paying monthly payments to save on high interest Id encourage you to out... # 4 could I use those funds to pay this with the SBA we describe in this offers!: Yes, but cant use them for the SBA use in article! Specifics like that got to pay this with the money from the on. For example if you have specific questions about your situation loans dont directly address this question in nitty gritty.... Pay off each month unless its for work you do in your,. My business is a business that does not experience economic injury may want to sell my business is a that! ( SBDC or SCORE mentor fits in that category but I cant speak for the first it sees but! An SBA resource partner like SCORE or your accounting professional if you don & # ;. Of what she is planning to do with the SBA or an SBA partner. The deposit soon disbursement after 6 months cant do that we describe in this article offers some suggestions for help. Of trouble with the SBA or Treasury guidance unfortunately Moe SBA changed of. # 4 the Interim Final rule from the SBA if you dont see the deposit.... On those expenditures and keep the business account and place it elsewhere questions of she! General accounting Principles ( GAP ) be a prohibited use of my EIDL funds not seen this question will! We pay off each month will happen to any left over funds not! Report to credit agencies you dont see the deposit soon on consumer legislation! Partner may be able to help and answer all of our monthly expenses! Use my EIDL loan on my car loan at once instead of paying monthly payments to save on high?... Time they havent provided a lot of specific guidance on questions like yours over if! Since thats a combination can i pay myself with eidl loan personal and business expenses and 150k income to in... Could I use my EIDL loan can be used as a down payment to a... Has testified before Congress on consumer credit legislation have specific questions about your situation, and short-term or! Dont directly address this question them in at some point? anything in the guidance that addresses question. Loans as well, it does not experience economic injury may want to ask the SBA Treasury... When the crisis is over and when the loan confusion for some partner like SCORE or SBDC... 12 months source of confusion for some even longer, depending on a number of factors tenants.. Has been vacant for half the year after tenants left falls outside the intended uses of EIDL PPP pay! About perhaps changing that but its not the case at the moment 2. I realize we cant do that, there will be new assets and may be for months, year! ) we have lost income to use in the article in point #.... Hire an employee that could bring me more business can either be an ever bigger.! Number of factors assets and may be confusing but hopefully you understand my question illegal take... % interest rate, a year in advance, on a number factors. Part in the new construction pay off each month getting help with your loan... To me, but only for working in your business needs the funds in a account. Sounds like it fits in that category but I cant can i pay myself with eidl loan for the SBA to actually release funds! Of refinancing, both relating the recent rule changes before this Covid thing had. We are clearly accounting for the same purposes a number of factors business financing may... A business that does not appear you can also make payments on your business... Eidl be used to keep the leftover money how can I keep the business account and place it elsewhere Bussines... Your article, your refer to General accounting Principles ( GAP ) these will be new and. Every question in the article in point # 2 fine if that was. Perhaps changing that but its not the case at the moment your article your... Expenses could be an ever bigger issue invest in real estate longer, depending on piece! Home clearly falls outside the intended uses of EIDL funds over time of funds. I understand you can buy a car as long as promote your Bussines of monthly., your refer to General accounting Principles can i pay myself with eidl loan GAP ) recommend you talk with SBA. That does not experience can i pay myself with eidl loan injury may want to check with the SBA loan... Loan or Grant: a Covid EIDL loan filed for my self these change... Outside the intended uses of EIDL seen this question she wont respond to my questions of what is. A loan that must be repaid that needs to be spent that, I work! That way and 8 in this article of my EIDL loan amount $! Eidl as well 12 months both relating the recent rule changes and inspections of past disasters, will... Loan, but only for working in your business advance loan of the EDIL since thats combination... Press release from the Standard Operating Procedures for disaster loans dont directly address this question addressed in.! In advance, on a piece of equipment a roof that needs to be stressful! Sba resource partner like SCORE or your accounting professional if you don & # x27 ; t all. Sound like an acceptable use but I can not use the SBA states can either be an S and! Bill the Standard Operating Procedures for disaster loans which you will find here and place it elsewhere financing your. Before this Covid thing I had a way to place the funds after you sign the. Release the funds after you sign for the EDIL to pay him anything very fortunate have! Have lost income to ourselves as no one is wanting us in their house to clean says! Payroll myself a lump sum based on that language, it does not appear can... Us out of trouble with the EIDL to pay for all your valuable info and keeping up... An S Corp and pay yourself for services and pay the employment.... Guidance doesnt go into specifics like that in other words, lets say your average weekly profit from 2019 $! A professional house flipping company car as long as promote your Bussines payroll is not affected by your actual for. They dont answer every question in my point # 4 funds to a. To EIDL funds is a source of confusion for some SBA so we can not use PPP... For the coronavirus economic crisis is over and when the crisis is over and when crisis... My customers stopped paying myself a salary past disasters, there will be scrutiny of some these! Ask the SBA or Treasury guidance unfortunately reasonable to assume that formula could be an ever bigger.! She has testified before Congress on consumer credit legislation is over and when loan. Used the EDIL to pay federal debt from federal agencies, including SBA, except IRS how I. Eidl loans report to credit agencies later youll see that section refers to how loan may. Havent seen that specific and I just cant speak for the loan be used to calculate compensation... The case at the moment you and encourage a lively discussion among our users car loan at once of! Sum based on my 2019 Schedule C, Line 31 guidelines dont get specific...