E. Ineligible Uses of Loan Proceeds:
EIDL proceeds may not be used for:
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Payment of any dividends or bonuses
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Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant
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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
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Expansion of facilities or acquisition of fixed assets
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Repair or replacement of physical damages
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Refinancing long term debt
Resource link: https://www.sba.gov/sites/default/files/2018-06/SOP%2050%2030%209-FINAL.PDF