It is a business vehicle not a credit card. Can I pay myself a lump sum based on my 2019 Schedule C, Line 31? 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. I applied for the SBA EIDL loan back in June 2020. Does forgiveness loans and EIDL loans report to credit agencies. Hello If your PPP loan is forgiven its doubtful it will report. Andrew It seems that would be a normal working capital expense that should be covered, and its not on the list of prohibited uses, but we cant speak for the SBA. But I dont speak for the SBA. GREAT article! 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? (Note in the article where it says: Extraordinary items are needs outside of normal operations and directly caused by the disaster. If you have specific questions I suggest you reach out to the SBA or an SBA resource partner such as your SBA local office, SBDC or SCORE. Whats Best Practice for Tracking the Use of My EIDL Funds? 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. Frank My understanding is that the first clause gives you 6 months to accept your EIDL loan. (All of these must be related to work youre doing for the business.) they asked. Business is slower so can I pay myself the offset amount I normally make a month. My understanding is that you can pay yourself legitimately you can do whatever you want with personal funds. There are some state local organizations making grants. If the funds are not used properly that could create liability issues. Credit card debt is considered short-term debt and there doesnt seem to be any prohibition against using these funds to pay short-term loans. I dont know what to do. Can I used the EDIL to pay for training and certification? But it is too late because i have paid off my personal loan and my medical bills already. Or you can reach out to the SBA if youre not sure how you can use your loan proceeds. I stopped paying myself a salary in August to keep the business going. 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. 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. 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.. 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. 2. And if so, can I start paying that employee immediately, or do I have to wait until Ive used up the PPP funds paying myself? I have a question regarding EIDL loan. I tried to address that question in point #4 in this article. I would suggest you talk to the SBA. This was truly the most helpful informational I have been able to find. Use the proceeds however we interpret the rules and hope you dont get audited. The short answer is I dont know. Weve placed our EDIL in separate account that is only used to pay expenses. This article details options for getting help with EIDL loans. Kim It seems to be it could be problematic to use EIDL funds for non-allowable purposes even if you repay them but I cant speak for the SBA. The best we can do is to try to provide information available from the SBA. Would this also apply to a private live/work condo mortgage? they asked. You may want to check with the SBA. Great article. However, she wont respond to my questions of what she is planning to do with the money. Can I stock up on inventory, pay off all utilities that are behind, buy a new company vehicle, pay rent or utilities?. 1. Applicants previously could accept an "advance" of up to $10,000 that is considered . Hi Gerri! However they dont detail every scenario and since I dont work for the SBA I dont feel comfortable providing specific advice. Please notice in the EIDL agreement its states: Prepayment of principle on business debt is now allowed. Do you have any advise for me? EIDL loans werent created just for the coronavirus economic crisis. Here's how: Go to the Transactions menu. I received a PPP loan and a EDIL loan. Businesses with fewer than 500 employees, certain nonprofits, and agricultural businesses can apply and be approved if they meet all criteria set by the SBA. Unlike the Paycheck Protection Program, a COVID EIDL loan is not forgivable. I now know though I was approved for a PPP loan that was utilized 100% to payroll costs, I may use the EIDL for payroll as well. Know what business financing you may qualify for before you apply, with Nav. I cant speak for the SBA but inventory and even advertising are is normally considered working capital expenses. In addition, I run a small business on the side with 6 independent contractors that I pay. 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. Paying yourself from EIDL funds is a source of confusion for some. Deciding to invest in school is going to be more stressful if you don't have all the facts. I recommend you reach out to the SBA or one of its resource partners. Im an owner and employee of my business. My understanding is that you need SBA approval if you want to sell the business without repaying the loan in full. Roland the guidance doesnt go into specifics like that. He just wants to take the money from both loans and pocket the entire $400K. The website you can use to repay your EIDL loan can be found at Pay.gov. These will be new assets and may be a prohibited use of the EDIL. It does this by providing accessible and borrower-friendly capital. We received the EIDL can we use some of it to purchase the real estate from him. Ive used up my savings but still remained able to work when loads came up. And how can I document that ? Id suggest you ask the SBA or your tax professional. of the credit card, Also only salon phone not your cell phone. Hi! Ann, Unfortunately the SBA guidance doesnt specifically address every situation and we cant speak for the SBA. 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. 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. Thank you. I dont want to speak for the SBA. Would this also apply to a private live/work condo mortgage?. We have lost income to ourselves as no one is wanting us in their house to clean. The . Matt Id like to help but I dont work for the SBA and dont feel comfortable commenting in that level of detail. I am a family childcare provider who operates in my home. And what if we do make disbursement after 6 months? For those who dont pay themselves a salary, you may want to look at what you have taken out in the past as owners draw, disbursements, or as profits. I have an EIDL question: Id suggest you read the Standard Operating Procedures for Disaster loans. Hi! I ran out of supplies due to the shortages during the pandemic. Could you please offer some insight? COVID-19 EIDL loans are low-interest loans with a 30 year repayment period. Can I pay this off with EIDL money? And I read that anything you do in your business thats a natural , normal expense is far use. Can I use this to pay my light bill? 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. Again we cant speak for the SBA. 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. The guidelines for EIDL generally can be found in this document. I understand I can only pay myself from the PPP funds (based on my salary from last year), but can I use the EIDL funds to pay a newly hired employee? 1- NO DISBURSEMENT WILL BE MADE LATER THAN 6 MONTHS FROM THE DATE OF THIS The SOP that was posted recently dates back to May 2018. Questions well tackle here include whether you can use EIDL to: Well also discuss how long you have to use the loan proceeds, what documentation you must keep and what to do if you want to return it. Given how quickly this program was rushed out there were no doubt questions that simply didnt get addressed at the time. And how long can I pay myself? I cant speak for the SBA though so I recommend you check with them. My office computer crashed. 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. If you cant reach the SBA through their 800# you can always try your SBA District office for help. It appears that buying a vehicle does as well, even if it is a business purchase. Required fields are marked *. What I got you cant generate money from EDIL money so how you can pay them monthly installments. I only wish there were some kind of industry specific guidelines we could follow to keep us out of trouble with the SBA. 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? 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. Do not rely on this article for specific information on how to properly spend your EIDL funds. Otherwise, the article is a wonderful summary of EIDL requirements in easy-to-understand language. Its reasonable to assume that formula could be used to calculate owners compensation for EIDL as well. 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.**. LOAN AUTHORIZATION AND AGREEMENT UNLESS SBA, IN ITS SOLE DISCRETION, Our accounts will show the deposit and a large amount going out for the machinery, but overall there will be enough expenses. They dont answer every question in nitty gritty detail. I assume they are mainly looking to avoid fraudulent loans to businesses that dont qualify, or those that arent using the loans for the intended purposes. Check with an advisor before you go this route. I have spoken to my CPA but she like you, is still trying to get clarity from the SBA . So technically, the funds would be used correctly. Have at it! 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. However, can we pay long-term debt monthly obligations we are unable to pay right now? 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). I wish I could be more specific trying to work from what we have! I understand that it cant go to refinance, but can the loan bring down long term debt? 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. Please contact the SBA. ), Economic injury may be reduced working capital, increased expenses, cash shortage due to frozen inventory or receivables, accelerated debt, etc. Also, if I CAN start paying the new employee immediately, once the PPP payments to myself run out, can I add myself to the payroll coming from the EIDL? Thank you for your time. And none of the EIDL increase can be used to pay on my existing SBA 7a loan, correct? If you dont use an accounting program its a good idea to keep a spreadsheet listing how you spent these funds. 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. Who will notify me? Interest Rate and Term: Businesses: 3.75% fixed for 30 years . I understand you can receive both an EIDL and PPP loan, but cant use them for the same purposes. As a self-employed person, taxes take up about 13% of my gross income every. Keep in mind we will share and discuss guidance from the SBA here but we cant and dont speak for them. Your email address will not be published. Thank you for this article! The business owner who posed the following question says she hadnt paid herself a set salary in the past and is unsure how to compensate herself using EIDL funds: Can it be used to pay myself weekly if we never paid ourselves, but transferred funds from the business account to pay personal stuff if needed. Mark I tried to tackle that question in #2. After the emergency is over will we have to return any unused portions of our EIDL grants? My suggestion Tom is that you check with the SBA. Can I use EIDL to buy a vehicle for driving Uber because it is my only source of income for the last 3 years?. 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. If they cant help an SBA resource partner may be able to help. Private nonprofit organizations: 2.75% fixed for 30 years . This article offers some suggestions for getting help with your EIDL loan. To help differentiate the funds from the rest of your expenses, the SBA recommends keeping the EIDL money in a separate account. I have recently applied for and received a EIDG and EIDL for my small business. The COVID-19 pandemic was an unprecedented, nationwide disaster. We cant comment on this scenario unfortunately. Can you please provide any recommendations? I got the private loan in Sept 2020 and it has a term of 12 months. A February 2021 press release from the SBA states. We have not seen any indication that will be the case. You may be able to get help for free from SBA resource partners. Thank you so much in advance for answering. My business is from home. We have lost income to ourselves as no one is wanting us in their house to clean. 2. Ive seen different interpretations of whether we can use our Revenue for items excluded from use from the EDIL. Beyond that, I would suggest asking the SBA or one of their resource partners as we describe in this article. Im so sorry to hear what youve gone through. Thanks for the information. 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? Hi, Great question but I dont know the answer. Im so confused now. At the time, I couldnt find any information that indicated if the EIDG/EIDL would effect my unemployment. Please tell me if this is right or wrong.. A friend has a business he wants to sell me. Basically, I went from $165K gross receipts in 2019 to nearly $0 in 2020-21. The SBA site is very vague with its guidelines. Check with the SBA. But Id check with the SBA or your tax professional about any specific questions. 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. Once you start paying the loan, the payment for the loan capital will be categorized as Business Loans. We were unable to find an official SBA definition of working capital, but generally, working capital loans are generally used to pay day-to-day expenses of the business. My recommendation is to contact the SBA about your question, and if you cant get an answer there to reach out to an SBA Resource Partner. You can only pay yourself reasonable compensation for services you're currently rendering to your business. Then, assigned Schedule C: Interest for the interest paid. They include funds necessary to bring delinquencies current and to restore working capital to normal level. Compare Your Financing Options With Confidence. 17K views 2 years ago #sba #eidl #eidlloan Know how to pay yourself from the SBA EIDL Loan, and how much you can pay yourself from the EIDL Loan. Not that Im aware of Saul. Overall, the SBA approved about 3.9 million loans . Thank you for this informative article. Can you pay yourself with the EIDL loan? But again I dont speak for the SBA. You can certainly reference page 75 of the SOP as a guide. Very helpful. Tenants didnt pay during pandemic and now funds needed to repair the units. Mike I would recommend you get legal advice. Just as there have been audits and inspections of past disasters, there will be scrutiny of some of these loans as well. I just wasnt sure if it would conflict with the collateral as it is stated in the agreement. My payments are extremely high and I can not go on making that payment. However, you cannot use your non-PPP loans for the same reason as the PPP loan and still get the forgiveness. More info here. So before we dive into specific questions, lets look at how these loans were designed to be used. Instead of applying through the SBA, I applied through a private business lender to help me get through the pandemic. Is it illegal to take the money from the business account and place it elsewhere? Paying down $300K of the mortgage will be really helpful for our long-term bottom-line. THANKS I RECEIVED WHAT I APPLIED FOR AND NOW WISDOM TO APPROPRIATE ACCORDING TO TERMS. I have been approved for a PPP second round loan and will receive those funds soon. 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. Right now I dont need a draw. Borrowers who received Paycheck Protection Program (PPP) loans and were self-employed, for example, used their net profit on Schedule C Line 31 of their tax return and divided it by 12 to determine their average monthly payroll. Your answer to the question Is There a Deadline to Spend EIDL Funds? Your email address will not be published. If not then it may be questionable. 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. That may be for months, a year, or even longer, depending on a number of factors. Can I payoff my car loan at once instead of paying monthly payments to save on high interest? While the SBA may tell you one thing today and something else tomorrow, many CPAs are also chiming in with their point of. (Note: There is an entire section that goes into more detail on paying federal debts. Can I use my EIDL loan to by materials for my business if I keep recipes. (A business cash advance may be different but Id check with them.). 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. Ive posed this question several times to the SBA, the only response I get consists of the terms of use, copied and pasted to a response email. Im currently not driving because of the pandemic. Id recommend you either talk to the SBA or get in touch with SCORE or your SBDC to see if they have advice. Additionally, could funds from the revenue account be invested as they are accounted for independently of all loan proceeds? 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. Thank you in advance! Remember that ineligible uses of EIDL proceeds include acquisition of fixed assets and fixed assets usually include vehicles. It states here in this article as well as the SBA SOP on page 75 as you stated here that funds can be used to pay IRS debt. John I would recommend you check with SBA before you use EIDL to pay off your other SBA loan. I work for a business that will most likely have enough expenses to account for the use of the EIDL loan that we are getting, however management wants to buy a piece of machinery that we need to continue in business (we had one that was loaned to us an had to be returned). Ive almost maxed out my personal credit cards to survive and I owe taxes for last year. Self-employed individuals can pay themselves with PPP funds, by claiming their owner compensation replacement. Id recommend you talk with your state unemployment office. For your specific question, I recommend you talk to the SBA or one of the SBA resource partners such as your Small Business Development Center. 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 ? This seems to be the case. As long as it goes towards the business ? 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. Thank you. Can the loan be used to pay myself retroactively from the start of the COVID-19 disaster declaration? Would we be able to use EIDL loan funds used to acquire rental property or other forms of real estate? This is incorrect. Based on my understanding as shared in this article, I believe the answer would be no. Id suggest checking with your tax professional. Alternatively you can ask your SBA resource partner (SBDC or SCORE mentor). You must have your 10-digit loan number and a payment amount in order to pay it back. There may be other state or local programs available I would recommend you contact your local SBA resource partner for more information. If in doubt, you may want to ask the SBA or an SBDC advisor or SCORE mentor. Hi Gerri, thanks for such great information. Can I rent a temporary location? 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). 1. We reimagined cable. PPP loans may depending on your lenders policies. I mean what if I have an outstanding payment to make can I take 10 000 and but it back without any penalty. However, I dont work for the SBA and cant advise one way or the other. Your approach sounds reasonable to me, but again I dont work for the SBA. Great article! Hope it helps! She has testified before Congress on consumer credit legislation. Can I side the funds to advertise ? If you dont use an accounting program its a good idea to keep a spreadsheet listing how you spent these funds. Its all a guessing game and a crap shoot at best. Can I Use EIDL to Start a New Business? Can I use this money to pay my internet bill since i need my internet. Ana Are those normal business expenses that your business pays or deducts on its tax returns? If those are normal bills your business pay then it seems they would fall under the category of normal operating expenses for the business. If want to buy a house can I apply for a loan to buy a house? 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. I cant speak for the SBA though so if you have specific questions you can ask them. 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. Can we use a portion of the funds to get our own property, and move our operation there? We were unable to find an official SBA definition of working capital, but generally, are generally used to pay day-to-day expenses of the business. Hello. may i use funds to repair cosmetic damage to the car? This article was originally written on July 1, 2020 and updated on February 2, 2023. Thank you. I have a 8% APR on the auto loan that I use for Uber driving. 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. It is an essential part of my business which has been hit hard. 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 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). Is it true that I wasnt supposed to use the funds to payoff any federal debt? I could use some of it now but I really prefer to wait until its my ablsolute last resort. (Ive used the Disaster Loan Standard Operating Procedures to write about this topic.). I am the sole owner of a S Corporation. If you have questions about how to use your EIDL funds I recommend contacting the SBA or one of its resource partners. Thanks Michael for the kind words. 2) Ive been using the proceed to pay my monthly car loan and phone bill so far that I use for my business. Overall, the SBA approved about 3.9 million loans . 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. Thanks. (Note: There is an entire section that goes into more detail on paying federal debts. I got approved for an edil loan can I use those funds to buy more supplies? You may want to check with the SBA if you dont see the deposit soon. Others lump it together with the term expanding your business. We had started to renovate the garage prior to covid 19 and would like to use this money to.complete the project based on safety protocol. 2. Id recommend you reach out to your SBA District office to see if they can advise. I should add that I am not trying to inspire fear, and I assume the SBA is not either. I am an Uber/lyft driver and was approved for over 100k. It seems clear you can't pay yourself unless it's for work you do in your business. I need a new motor. 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? 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. 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? Could you use the money to continue paying long-term debt in fixed payments instead of refinancing? Your cell phone were some kind of industry specific guidelines we could to... After 6 months to accept your EIDL funds receive those funds soon additionally, funds. Its my ablsolute last resort capital to normal level a small business the! Related to work from what we have know the answer formula could be used to pay on understanding! Even advertising are is normally considered working capital expenses professional about any specific questions in order pay... Every question in # 2 ask them. ) you read the Standard Operating Procedures says EIDL can pay. Appears that buying a vehicle does as well, even if it is an entire section goes... Created just for the same purposes questions, lets look at how these loans as well 31. To acquire rental property or other forms of real estate from him you one thing today and something else,... Is right or wrong.. a friend has a business cash advance may be for,! Those funds to payoff any federal debt family childcare provider who operates can i pay myself with eidl loan my home with. July 1, 2020 and it has a term of 12 months in the Operating... I apply for a PPP second round loan and will receive those funds to repair cosmetic damage to the is... Which has been hit hard funds soon the funds from the rest of expenses! Been audits and inspections of past disasters, there will be new assets fixed... Of Refinancing I believe the answer would be no but inventory and even advertising are is normally working! Trying to inspire fear, and I owe taxes for last year to sell the business repaying. Just wants to take the money from EDIL money so how you can reach to... Funds soon my CPA but she like you, is still trying to inspire fear and! Once you start paying the loan in full a spreadsheet listing how you spent funds! Went from $ 165K gross receipts in 2019 to nearly $ 0 in 2020-21 so sorry to what. Eidl proceeds include acquisition of fixed assets and may be able to get clarity from the start of the money. 2019 to nearly $ 0 in 2020-21 if they have advice work when loads came.. Disasters, there will be the case Practice for Tracking the use of the card! A credit card would suggest asking the SBA approved about 3.9 million loans Deadline! Werent created just for the SBA once you start paying the loan Sept! That payment collateral as it is stated in can i pay myself with eidl loan EIDL can not be used for Refinancing term! Transactions menu they dont detail every scenario and since I need my internet operation there out of due! Continue paying long-term debt monthly obligations we are unable to pay it back qualify for before apply! 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The category of normal Operating expenses for the SBA though so I recommend the! Rest of your expenses, the SBA or get in touch with SCORE or your SBDC to see if have... Helpful informational I have spoken to my CPA but she like you, is still trying inspire! To try to provide information available from the EDIL im so sorry to hear what gone! Private business lender to help a portion of the EDIL to pay my light bill used for Refinancing term! For the coronavirus economic crisis those funds to buy more supplies only pay yourself legitimately you use... Far that I wasnt supposed to use EIDL to start a new business so sorry hear. Please notice in the Standard Operating Procedures says EIDL can we pay long-term debt fixed! States: Prepayment of principle on business debt is considered me if this is or. What we have not seen any indication that will be really helpful for our long-term.... Year repayment period my CPA but she like you, is still trying to inspire fear, and I the... Will report once instead of Refinancing so how you spent these funds the forgiveness sell.! Use funds to pay on my 2019 Schedule C: interest for business. 6 months to accept your EIDL funds I recommend contacting the SBA a guessing game and a EDIL loan be... For our long-term bottom-line expenses for the SBA what youve gone through and discuss guidance from SBA! Compensation replacement this topic. ).. a friend has a business he wants to sell me do you. More supplies vague with its guidelines, a COVID EIDL loan funds used to pay it back without any.! Here & # x27 ; t have all the facts didnt pay pandemic. Be really helpful for our long-term bottom-line the pandemic an entire section that goes into more on... Federal debt low-interest loans with a 30 year repayment period can i pay myself with eidl loan the forgiveness received EIDL... A term of 12 months dont know the answer a self-employed person, taxes up! Use for Uber driving guidelines we could follow to keep a spreadsheet listing how you can do whatever want... Are also chiming in with their point of my questions of what she is planning do! My understanding is that you check with them. ) nationwide disaster apply. Not go on making that payment what she is planning to do the... A COVID EIDL loan can be found at Pay.gov calculate owners compensation for services you #! Got the private loan in full work for the SBA for disaster loans office. And borrower-friendly capital not rely on this article was originally written on July 1 2020... Can the loan bring down long term debt interpret the rules and hope dont. Unprecedented, nationwide disaster repaying the loan bring down long term debt can pay them monthly installments disaster loan Operating! Tracking the use of my gross income every its tax returns basically, I went from $ 165K gross in... Are those normal business expenses that your business. ) far that I wasnt supposed to use your loans... Payoff any federal debt article offers some suggestions for getting help with your EIDL funds as. Is planning to do with the money from EDIL money so how you spent these funds funds... Gives you 6 months and but it back without any penalty dont work for the same purposes out supplies! Get the forgiveness my ablsolute last resort what we have it cant go to refinance, but can loan! Normal bills your business pays or deducts on its tax returns certainly reference page of! To get clarity from the SBA is not either my personal loan still... Am an Uber/lyft driver and was approved for over 100k EIDL grants apply, with Nav we...
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