Q: “Are there certain expenses with respect to which EIDL funds cannot be used?”

Authored by Aria Eckersley

Yes:

• Dividends and bonuses 
• Disbursements to owners, unless for performance of services  
• Repayment of stockholder/principal loans (with exceptions) 
• Expansion of facilities or acquisition of fixed assets (e.g., patios, drive-through windows, etc.)
• Repair or replacement of physical damages 
• Refinancing long-term debt
• Paying down or paying off loans from another Federal agency (including SBA) or a Small Business Investment Company
• Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations  
• Relocation expenses