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COVID Relief: How You Can (& Can’t) Use Your Economic Injury Disaster Loan & Advance

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Erica Seppala

Erica Seppala

Erica is a writer based in Greenville, South Carolina. She is a graduate of Limestone College. Initially determined to be an accountant, she put away the calculator and picked up a laptop to pursue her dream of being a writer. Erica has spent the past 10 years writing blogs and articles for hundreds of private clients, and she loves sharing her love of research and the written word with everyone around her.

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6 Comments

Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    Alan Clark

    Can you pay off a business vehicle loan you had before the advance?

      Erica Seppala

      Hi Alan,

      Fixed debt payments can be paid using your EIDL or EIDL Advance funds. This includes loan payments for vehicles that are used exclusively for business.

        Donna Lambert

        Hi, I have a hair salon and pre-COVID , there were 5 stylists working there. Since we have returned to work, we only have 2 which greatly affects my monthly income. I can’t find anyone to work there as we share spaces/ rooms. Clients do not want to be in a room with other’s. It’s been 15 months and no luck. I was applying for an edil in order to be able to afford separating work spaces so I can fill those stations. Can I use the eidl in this manner?

          Erica Seppala

          Hi Donna!

          Unfortunately, the EIDL can be used to cover normal operating expenses and financial obligations that would have been met if not for the pandemic. This includes things like payroll or rent. Things like renovations or business expansion would not be covered expenses. However, one option to consider is an SBA 7(a) loan, which has more flexibility and would allow you to separate workspaces or make other renovations to your salon. You would have to meet all requirements, including credit requirements, to qualify, but it’s something certainly worth looking into. Good luck!

            Laurie

            Can you purchase a computer and small office equipment with an eidl advance? My laptop i use for my biz is 10 years old…

              Erica Seppala

              Hi Laurie!

              Per the SBA’s rules for EIDL loans and advances, fixed assets and equipment are not covered expenses. EIDL funds should be used for day-to-day operating expenses. For example, funds could be used to cover payroll expenses, utilities, or office supplies.

              If you’re unsure of a purchase that you believe is part of your daily operating expenses, you can contact the SBA directly to learn if these purchases are eligible expenses. Good luck!

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