E. Ineligible Uses of Loan Proceeds:

EIDL proceeds may not be used for:

1. Payment of any dividends or bonuses;

2. Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant;

3. 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;

4. Expansion of facilities or acquisition of fixed assets;

5. Repair or replacement of physical damages;

6. Refinancing long term debt;

Resource link: https://www.sba.gov/sites/default/files/2018-06/SOP%2050%2030%209-FINAL.PDF