SBA EIDL Ineligible Uses of Loan Proceeds

SBA_EIDL / 8-6-2020 / File:# 396

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;

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